Jerome Powell Santa’s Helper in Bitcoin’s Journey beyond 35K!

Will Bitcoin Reach 35K by Christmas? Thank Jerome Powell if it Does

Picture this: It’s that time of year again, when a sense of holiday cheer wraps around the equity markets like a warm and cozy blanket. We’re talking about the Santa rally, folks. But hold on to your reindeer, because this year, things could be taken up a notch. I’m talking about a bonanza of holiday joy delivered by none other than the United States Federal Reserve, the Securities and Exchange Commission (SEC), and BlackRock. It’s a virtual Christmas miracle!

Now, let’s start with the Federal Reserve. They just finished their penultimate meeting for the year, and guess what? They decided to hold interest rates steady. It’s like the grand finale of a fireworks show, keeping us on the edge of our seats. You see, the Fed’s aggressive interest rate hikes have tamed inflation, bringing it down from a roaring beast to a mere kitten. And boy, did it work! Inflation went from a staggering 9.1% back in June 2022 to a more manageable 3.7%. That’s some serious magic right there!

But wait, there’s a twist in this holiday tale. While the Fed’s campaign has been undeniably successful, it’s got everyone a little jumpy. The markets are worried that higher rates or sustained rates at this level might trigger a recession. Even the Fed itself is starting to feel a bit unsure about inflation. It’s like the Grinch trying to steal our holiday cheer!

Now, here’s where the rollercoaster ride gets really interesting. Brace yourselves. Keep an eye out for the next Bureau of Labor Statistics inflation reading on Nov. 14. If it shows a downward move, get ready for money to flood into risk assets faster than kids tearing open presents on Christmas morning. Investors will be jumping for joy, anticipating an interest rate cut. And when that happens, it’s going to be like a giant surge of positivity for the equity markets. Think of it as a yuletide gift that keeps on giving!

But hold on, we’re not done yet. Crypto markets are joining this holiday spectacular too. Bitcoin (BTC) is being a real team player, staying closely correlated to the main markets. And here’s the real icing on the virtual blockchain cake: the eagerly awaited approval of the first U.S.-based Bitcoin spot ETF. Rumor has it that it will hit the scene before Jan. 10. The anticipation of this approval, combined with the buzz about BlackRock’s application, has already sent Bitcoin soaring back up to $35,000. That’s a level it hasn’t seen since the good old days of 2022, before Terra Luna came along and disrupted the party.

Now, I know what you’re thinking. Will this approval really make a difference? Well, let’s consider the age-old adage: “buy the rumor, sell the fact.” It might not be a massive explosion of fireworks, but it’s definitely going to light up the crypto skies. This approval has the potential to be the biggest driver for crypto markets since the conditions created by the Covid pandemic sent Bitcoin skyrocketing past $60,000 in 2021. It’s like a fully charged sleigh ready to deliver gifts of financial prosperity!

But, like any good holiday movie, we need a little suspense. We’ve got some potential spanners in the works, like higher inflation in the U.S. and tensions brewing between Israel and Palestine. These could be the Scrooge trying to crash our year-end Santa rally. But, for now, it seems like we’re on the right track, heading for a jolly and joyous celebration!

Now, let’s take a moment to appreciate the journey Bitcoin has taken this year. It’s been a wild ride, my friends. From the FTX crash that sent Bitcoin tumbling to the $15,000 range, to starting 2023 at a measly little price of just over $16,000. And look at it now, standing tall at $34,000 to $35,000. That’s more than 100% growth! It’s like Bitcoin went from zero to hero, and it’s waving from the top of Mount Everest!

Of course, let’s not forget that not everyone has been able to ride this rollercoaster like a pro. Many crypto investors are still nursing their wounds from previous years. Take the FTX investors, for example. While some may get their Bitcoin, Ether, and other tokens back, most are facing losses of 60% to 70%. Ouch! It’s like winning a battle but losing the war. No wonder the mood in the crypto market is a bit grim, despite its overall triumph in 2023.

But here’s the silver lining: As we approach the end of the year, let’s take a step back and appreciate Bitcoin and the crypto markets for what they are. They’ve survived another challenging year and are finishing on a high note. That, my friends, is something worth celebrating. So, whether we get that much-anticipated Santa rally or not, let’s raise a glass to the resilience of crypto and toast to an exciting future ahead!

Now, it’s your turn, dear readers. Are you ready for the holiday cheer in the markets? Will Bitcoin deliver presents or coal this season? Sound off in the comments below!

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