Two Upcoming Macro Events Could Crush Bitcoin (BTC), Says Analyst Nicholas Merten

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Popular crypto analyst Nicholas Merten claims that the short-term fate of Bitcoin (BTC) over the next few weeks will depend on two key macroeconomic events.

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’s coming up here next week and it has to do with the upcoming inflation numbers from the CPI report as well as the Fed at the FOMC meeting.

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

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

If the Federal Reserve sees a major downturn in the CPI, which means inflation is still incredibly high month-over-month and the annualized target it aims to achieve of 2% is still a long way off, so it could very well make another 75 basis point hike. They may want to prove that they are going to do what is necessary to curb inflation here, now.

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

“Does this mean that the market is immediately saved? Does this mean we are starting the next bull run?

No. In fact, if we look at previous bear markets, even as the Fed begins to pivot and lower the fed funds rate by several points, you will see that stocks have fallen further. It underperformed again because again, to the point where people are saying these things have lagging effects, you can’t just step in immediately, cut interest rates and save the day.

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