The bitcoin and crypto space are set for a potentially transformative week, with several key events that could have far-reaching implications for the market. Let’s delve into the particularities of each event:
bitcoin Spot ETF Approval #1: Friday
As Bitcoinist reported today, a critical window is currently open for the SEC to potentially approve the 12 bitcoin spot ETFs. The deadline is November 17, after which the most recent submissions will enter a public comment period. This is especially interesting because the SEC is supposedly intended to avoid favoritism in a highly competitive market, as industry experts highlight. Surprisingly, the SEC is due to make a decision on two bitcoin spot ETFs from Franklin Templeton and Hashdex by November 17.
#2 US CPI Report – Tuesday
The Consumer Price Index (CPI) report will be released on November 14 at 8:30 am ET. The main inflation metric in the US is expected to show a year-over-year (YoY) decline to 3.3% in October from 3.7% in September, influenced primarily by lower gasoline costs. Month-on-month (MoM) inflation is expected to be 0.1%, down from 0.4% previously.
However, core inflation rates, which exclude volatile food and energy prices, are likely to remain relatively stable. As in September, the forecast for the core inflation rate (monthly CPI) in October is 0.3%. The US year-on-year core inflation rate is expected to fall slightly from 4.1% to 4.0%.
The Federal Reserve’s reaction to these figures will be critical, as its chairman Jerome Powell has indicated his willingness to continue interest rate increases if inflationary pressures do not ease. This data is crucial for investors and could have immediate implications for the bitcoin and cryptocurrency market.
#3 US PPI Report – Wednesday
The October Producer Price Index (PPI), scheduled for release on November 15 at 8:30 am ET, provides information on inflation at the producer level. The forecast indicates a marginal increase in PPI year-on-year from 2.2% to 2.3%. The PPI could provide a complementary perspective to the CPI and is essential for understanding inflationary trends from the production side of the economy.
#4 Possible US Government Shutdown – Friday
The risk of a US government shutdown looms (again), with November 17 a critical date. This comes in the wake of Moody’s downgrading the US credit rating outlook to “negative”, citing concerns about large fiscal deficits and debt affordability.
Proposals for temporary measures have once again been put forward in an effort to avoid a government shutdown. However, several US government agencies are already beginning preparations to prepare their staff for a possible partial shutdown, following their established protocols.
This could have several implications for bitcoin and cryptocurrencies. On the one hand, bitcoin and cryptocurrencies have historically reacted positively to the US government shutdown, and the market rally could strengthen further. On the other hand, as was the case last time, the SEC’s decision on spot bitcoin ETFs could come as early as Friday.
#5 Important Polygon Announcement: Tuesday
Polygon has been generating considerable excitement in recent days, in line with its progress towards the 2.0 roadmap. Sandeep Nailwal, CEO of Polygon Labs, has sparked a greater sense of anticipation. On November 7, he hinted at major announcements planned for November 14.
Are you ready?
November 9
November 14th
Stay tuned!
-Sandeep Nailwal | deep. polygon (@sandeepnailwal) November 7, 2023
Speculation within the community abounds, with dominant theories suggesting the possibility of an airdrop and the revelation of a significant partnership. This conjecture is fueled in part by Nailwal’s earlier comments about a possible airdrop to users of Polygon’s ethereum Layer 2 solution, Polygon zkEVM. Furthermore, the ongoing transition of the network’s native token from MATIC to POL has sparked more debates and theories.
At press time, bitcoin was trading at $37,072.
Featured image by Jeremy Yap/Unsplash, chart by TradingView.com
