Trading below 77,000 dollars on Thursday evening, Bitcoin hit its lowest level in a week. Investors are in the grip of monetary policy uncertainties. Investors fear that the monetary policy headwinds on both sides of the Atlantic will last longer than thought. The recent euphoria has thus given way to a sober assessment at the latest. Larger losses could be capped by hopes of sustained political tailwind from Washington ahead of the US midterms.
Bitcoin Price
US producer prices rise significantly – Consumer prices in focus on Friday
Monetary policy has once again become a major focus for the capital markets. According to the latest data, U.S. producer prices rose by 0.4 percent compared to the same month last year, which is in line with economists' expectations, but significantly higher than in the previous comparison period (0.1 percent).
On Friday, the focus will be in particular on US inflation data (2:30 PM), which could make or break the stock market week. Experts expect an increase of 3.4 percent, following 3.4 percent in July as well (compared to the same month last year).
Fed rate decision likely casting shadows - fear of Fed rate hike
Furthermore, the eagerly awaited Fed central bank meeting, scheduled for next Wednesday, is likely casting its shadow ahead. The US central bank might tighten the screws on interest rates. The CME „FedWatch Tool“ signals a 69.6 percent chance of a quarter-percentage-point rate hike. 30.4 percent of market participants expect a rate pause.
At the same time, investors continue to hope for political tailwinds from Washington ahead of the US midterm elections. US President Donald Trump had urged the passage of the so-called "CLARITY Act" a few weeks ago.
