- After a strong start to the first week of October 2023, the first week has been quite volatile for Bitcoin and the overall crypto market.
- The US will release the Consumer Price Index (CPI) and Producer Price Index (PPI) data for September, and the Federal Reserve will publish the minutes of its September meeting.
- Bloomberg’s Senior Commodity Strategist, Mike McGlone, suggests that following the recent escalation between Hamas and Israel, Bitcoin has exhibited a “flight to safety” tendency.
It’s a challenging week ahead for Bitcoin investors: economic reports from the US and speeches by Fed officials will determine the direction.
Bitcoin Investors Keeping an Eye on CPI Reports
After a strong start to October 2023, the first week has been quite volatile for Bitcoin and the overall crypto market. Bitcoin made modest gains and is trading at around $28,000. Meanwhile, some selling pressure was observed in altcoins. Developments in traditional financial markets, with 10-year Treasury yields reaching their highest levels in 16 years, have dampened the crypto market rally.
This week, a series of significant macroeconomic data releases is planned. The United States will release the Consumer Price Index (CPI) and Producer Price Index (PPI) data for September, and the Federal Reserve will publish the minutes of its September meeting. Additionally, many Federal Reserve officials are expected to deliver speeches.
Investors will be closely reading Fed comments as they prepare for another interest rate hike by the central bank in 2023. As a result, they are moving cautiously without a clear roadmap.
Bloomberg’s Senior Commodity Strategist, Mike McGlone, suggests that following the recent escalation between Hamas and Israel, Bitcoin has exhibited a “flight to safety” tendency. McGlone also notes that the rise in crude oil prices has contributed to liquidity pressures in the market.
Some Positive On-Chain Developments for Bitcoin
Over the weekend, Bitcoin recorded one of its biggest up days in over a month. On-chain data provider Santiment announced that Bitcoin witnessed the largest coin movement away from exchanges, totaling over 10,000 BTC, since September 7.
Meanwhile, the leading cryptocurrency, with the highest market capitalization, is making its second attempt to surpass the $28,000 price threshold. The importance of usage is emphasized, particularly during a period when the number of unique addresses has reached its lowest level in six weeks. Alongside Bitcoin, the altcoin market, including Ethereum (ETH), Solana (SOL), Cardano (ADA), and others, also experienced corrections of 3-5% last week.
