- Super Central Bank Week to encounter interest hike on December 14.
- Europe and Great Britain central banks to release hike decisions in the same week.
- Mike McGlone called Bitcoin a potential high-beta version of gold.
The US Federal Open Market Committee (FOMC) announced that following its last six substantial interest rate hikes in 2022, the government agency would push another hike on December 14 with a 75% chance to hike it by 50 basis points.
Simultaneously, the central banks of Europe and Great Britain plan to release their interest hike announcements in the same week, alongside the US publishing its November inflation figures that will determine the path for the Federal Reserve’s policy decision for the rest of 2023.
Hence, marks the beginning of the “Super Central Bank Week.”
The global crypto market capitalization dropped by 2% in just 24 hours on December 12, falling to $877 billion. Additionally, Bitcoin is currently trading at below $17,000, with Ethereum under $1,300.
In response to BTC’s sinking prices, the full-time crypto trader and Eight Global founder and CEO Michael Van De Poppe tweeted, “incredibly terrible price action on Bitcoin.”
Moreover, the gold markets have observed a fall in gold rates in light of the upcoming policy decision, as inflation is directly proportional to gold prices. Both digital gold and Bitcoin are also anticipated to exhibit volatility amidst policy changes.
Senior strategist Mike McGlone at Bloomberg tweeted that Bitcoin is transitioning into a “high-beta version of gold,” enabling Bitcoin to surpass gold during down market trends. However, BTC can underperform gold if the yellow metal fails.
Calling Bitcoin “the world’s most fluid 24/7 trading vehicle”, McGlone added that BTC has acquired the status of a leading indicator in 2022, and declined in a risk-off environment.
He further predicted that gold will become a top performer given the US enters a recession in 2023 while tweeting that the “period of global economic malaise looks to us like it will be severe and enduring.”
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