February 2, 2023

Popular crypto analyst Nicholas Merten says the near-term fate of Bitcoin (BTC) will depend on two major macroeconomic events in the coming weeks.

In a new video update, the DataDash host tells his 511,000 YouTube subscribers that the market is waiting for the Consumer Price Index (CPI) report and the last Federal Reserve meeting of the year, both scheduled for this week.

“Why don’t people buy the dip? The reason, in my opinion, is what comes here next week and it has to do with the upcoming inflation numbers from the CPI report and the Fed at FOMC meeting.

The CPI report will be released on Dec. 12, while the Federal Open Market Committee (FOMC) meeting will take place on Dec. 14. Merten says the CPI report, often a mover of crypto markets, is likely to reveal higher-than-expected inflation data.

Merten says that while more than 80% of the market expects the Fed to raise rates by 50 basis points, the hike could be higher depending on the CPI report.

“If the Federal Reserve sees a major downward move in the CPI, meaning inflation is still incredibly high month after month and the annualized target of 2% they want to reach is still a long way off, they can still do very well. once a 75 basis point hike, they may want to prove that they are going to do whatever it takes to bend inflation here and now.”

The analyst says that even if the Fed opts for a lower-than-expected rate hike, markets will still be under pressure.

“Does this mean that the market is simply saved right away? Does this mean we are entering the next bull run?

No. In fact, if we look at past bear markets, even as the Fed starts to pivot and start cutting the federal funds rate by several points, you’ll see that stocks were still falling. It still underperformed because, again, to the point where people say these things have lagging effects, you can’t just jump right in, lower rates and save the day.

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