Will there be a Bitcoin (BTC) bull market in December? Three important factors to consider

TL;DR

• Bitcoin's rise in 2023: Bitcoin is up over 130% this year, with upcoming factors such as the FOMC meeting on December 13th and the US inflation rate announcement on December 12th potentially influencing further price movements.
• Effects on the interest rate: The Federal Reserve's upcoming decision on interest rates, which could remain stable or decline, is expected to impact the value of Bitcoin. Lower interest rates could encourage investments in BTC.
• Discover BTC ETF prospects: The potential approval of a spot Bitcoin ETF in the US, particularly by firms like BlackRock with a strong track record in ETF approval, could significantly increase the price of Bitcoin.

Is BTC preparing for the final sprint?

It's safe to say that 2023 has been an extremely successful year for Bitcoin so far. Its price has increased by over 130% since January 1st. However, the question remains whether the upward trend can continue in December.

Several upcoming developments could impact BTC's performance, with three factors being of particular importance.

The first is the next Federal Open Market Committee (FOMC) meeting, scheduled for December 13, at which the US central bank will review its anti-inflation policy. Most experts expect the Federal Reserve to leave interest rates unchanged. However, there is still a chance that the institution will decide to lower the percentage.

Keep in mind that previous Fed announcements on this matter have influenced the price of Bitcoin (BTC). The capital dropped below $30,000 this summer when the company raised interest rates by 25 basis points.

On the other hand, low interest rates could encourage borrowing and investment. It could also encourage people to shift their focus to more volatile, riskier assets, including BTC. A person who thinks that cutting interest rates would send the asset “to the moon” is Arthur Hayes – Co-founder of BitMEX.

What about inflation?

The Fed's decision on whether to cut interest rates would most likely be based on inflation in the United States. The latter has lowered its galloping temperatures in recent months, but it is important to keep an eye on it.

Market participants should mark December 12th on their calendars, as that is the day the US Bureau of Labor Statistics will report on how the inflation rate has changed over the past month.

Spot BTC ETF could be a huge catalyst

Last but not least are the efforts of giant financial institutions such as BlackRock, Fidelity and Invesco, all of which have applied to launch a spot Bitcoin ETF in the US.

The world's largest asset manager has an outstanding track record, with 575 of its 576 ETF applications approved by the SEC over the years. Therefore, it is no wonder that joining the crypto bandwagon was greeted with enthusiasm by BTC bulls.

Several experts and even the AI-powered language model have done it recommended that a possible “yes” from the American securities regulator could trigger a massive increase in the asset’s valuation.

Some even assume that possible approval could come before the end of 2023. Anyone wondering how high the cryptocurrency could rise in the following months can watch our video below:

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