Bitcoin News and Forecast for December 10, 2023
Date: 2023-12-10 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin's Soaring Price and Investor Frenzy
Over the past few weeks, Bitcoin has witnessed an extraordinary rally, with its price surging by more than $10,000. This remarkable increase has triggered a frenzy among investors, as they scramble to get in on the action. The driving forces behind this surge have been the growing expectations of the approval of a Bitcoin spot ETF and the Federal Reserve's decision to relax its monetary policies.
Investors rushed to enter the market in anticipation of further gains, resulting in a surge in bullish sentiment and a decline in bearish positions. As the first waves of profit-taking began, it became clear that Bitcoin's ascent was far from over.
Global Market Overview and Its Impact on Bitcoin's Forecast
In the United States, the Dow Jones Industrial Average rose by 0.3%, and the S&P 500 index climbed by 0.4%. The Nasdaq, a tech-heavy index, experienced a 0.5% increase during morning trading.
Among American exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust grew by 0.5%, while the SPDR S&P 500 ETF saw a 0.4% rise at the start of the day.
The yield on 10-year US Treasury bonds rose to 4.22%, with the benchmark rate settling at 4.12%, still at its lowest point since early September.
Oil prices rebounded on Friday, attempting to recover from sharp losses earlier in the week. West Texas Intermediate (WTI) crude oil futures increased by approximately 2%, although they remained below $71 per barrel. This week, WTI futures hit their lowest level since the end of June.
Alphabet, Google's parent company, saw its shares rise by 6.4% following the announcement of its competitor to ChatGPT, Gemini. Alphabet's stock closed with a 5.34% increase at $138.45 per share.
Markets responded to weaker-than-expected job vacancy and private sector employment data earlier in the week, further fueling expectations of interest rate cuts in the coming year.
Consumer prices in China fell at their fastest pace in three years in November, while factory deflation deepened, signaling heightened deflationary pressure due to weak domestic demand, casting doubt on the economic recovery.
The year-on-year core inflation rate, excluding food and fuel prices, remained at 0.6%, the same as in October, underscoring the challenge faced by Chinese authorities in stimulating demand in the midst of persistent deflationary forces.
Although consumer prices in the world's second-largest economy have teetered on the edge of deflation in recent months, China's central bank chief, Pan Gongsheng, stated last week that inflation is expected to "move upward."
Bitcoin's Short-Term Price Outlook
The Bitcoin forecast for the near future suggests that the cryptocurrency's price will range between $43,500 and $44,500. No significant price spikes are anticipated in the short term.
