Will December See a Bitcoin (BTC) Bull Run? Three Major Factors to Consider

TL;DR

• Bitcoin’s 2023 Surge: Bitcoin has risen over 130% this year, with upcoming factors including the December 13 FOMC meeting and the December 12 US inflation rate announcement potentially influencing further price movements.
• Interest Rate Impact: The Federal Reserve’s upcoming decision on interest rates, which might remain stable or decrease, is expected to affect Bitcoin’s value. Lower interest rates could encourage investment in BTC.
• Spot BTC ETF Prospects: The potential approval of a spot Bitcoin ETF in the USA, especially by firms like BlackRock with a strong ETF approval track record, could significantly boost Bitcoin’s price.

Is BTC Gearing up for a Final Sprint?

It is safe to say that 2023 has so far been a highly successful year for Bitcoin. Its price jumped by over 130% since January 1st. The question remains, however, if it can continue its bull run in December.

Several pending developments might influence BTC’s performance, with three factors standing out in terms of importance. 

The first is the next Federal Open Market Committee (FOMC) meeting scheduled for December 13, where America’s central bank will review its anti-inflationary policy. Most experts forecast the Federal Reserve to keep the interest rates unchanged. However, there is still a chance that the institution might decide to lower the percentage.

Recall that previous announcements coming from the Fed on that matter have affected the price of Bitcoin (BTC). The asset dropped below $30K this summer when the entity lifted interest rates by 25 basis points.

On the other hand, low interest rates could encourage borrowing and investing. It might also stimulate people to shift their focus to more volatile, risk-on assets, including BTC. One person who thinks cutting the rates would send the asset “to the Moon” is Arthur Hayes – co-founder of BitMEX.

What About Inflation?

The Fed’s decision on whether it should decrease interest rates would most likely be based on the inflation in the United States. The latter has reduced its galloping temps in the past several months, but it’s important to keep an eye on it.

Market participants should put December 12 on their calendars since this is when the US Bureau of Labor Statistics will report on how the inflation rate changed throughout the past month.

Spot BTC ETF Could be a Massive Catalyst

Last but not least, it is worth mentioning the efforts coming from giant financial institutions, such as BlackRock, Fidelity, and Invesco, which all filed to launch a spot Bitcoin ETF in the USA. 

The world’s largest asset manager has an outstanding record of seeing 575 out of its 576 ETF applications approved by the SEC over the years. As such, it is no wonder why its jump on the crypto bandwagon was met with enthusiasm by BTC bulls.

Multiple experts and even the AI-powered language model have suggested that a possible “yes” coming from America’s securities regulator could trigger a massive increase in the asset’s valuation. 

Some have even assumed that the potential approval could occur before the end of 2023. Those wondering how high the cryptocurrency could spike in the following months could take a look at our video below: