Bitcoin (BTC) began the second week of December with a slightly bearish movement that has led it to position itself below $99,000. This, while waiting for different relevant events for the market that will occur during the current week.
Investors’ eyes are on the meeting that Microsoft shareholders will have tomorrow, Tuesday, December 10. One of the voting topics at this meeting will be bitcoin investment evaluation. Consequently, this initiative will lead to upward winds for the price if it advances (or possible price drops if the vote is negative).
Microsoft is the third most valuable publicly traded company in the world, so it could make a multi-million dollar purchase of bitcoin by just investing a minimal part of its assets. In fact, allocating just 1% of its treasury, would acquire 8,156 BTCwhich would position it as the eighth listed company with the most holdings in the digital currency.
This situation would not only imply upward pressure on the price due to the simple law of supply and demand, but it would also would be a significant step in institutional adoption. With a big player like Microsoft, other companies could consider acquiring bitcoin as part of their investment strategy.
However, it should be noted that Microsoft’s shareholder meeting has recommended voting against the investment evaluation proposal in bitcoin. Therefore, the final decision could bring high volatility.
In addition to this, on Wednesday, December 11, the consumer price index (CPI) of the United States will be known, where the largest investment market operates. Therefore, this event could add turmoil to markets, including bitcoin and cryptocurrencies.
Higher inflation is projected in the United States
According to the survey published by the Investing explorer, The annual CPI of the economic power is expected to rise from 2.6% to 2.7%. This increase in inflation could bring some risk aversion in the markets, something that may be motivating the slight decline at the beginning of the week.
United States annual CPI in recent months and forecast. Fountain: Investing.
Bitcoin is currently trading near $98,000, which is 5% below the new all-time high it hit last Thursday of $103,600.
“Macroeconomic uncertainty and the potential for more geopolitical shocks can generate volatility and setbacks,” warns Alejandro Estrin, country manager of the OKX Argentina exchange, to CriptoNoticias. However, he clarifies that declines do not necessarily mean the end of the currency’s uptrend.
“Steep Cryptocurrency price rallies have previously been characterized by pullbacks, and we need to be prepared for similar situations. Declines are possible on the way to new all-time highs, and it is up to the community to be vigilant,” says Estrin.
It should also be noted that the inflationary situation in the United States could contribute to a cut in interest rates in the United States, which implies greater liquidity for the markets. The decision on this will take place next week.
“One of the points where there is always expectation is the Federal Reserve’s interest rate cut, since having lower rates makes assets perceived as safer (such as Treasury bonds and term deposits) less attractive. and alternative investments such as cryptocurrencies are gaining ground,” explains Sebastián Serrano, CEO of the Ripio exchange, in a note sent to CriptoNoticias.
Meanwhile, On the same Wednesday, December 11, interest rates are expected to fall in Europe and Canadasomething that can unleash positive winds for the markets.
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