After a gloomy few weeks, Bitcoin is finally on its way to break through the $30,000 mark following Grayscale Investment's victory against the United States Securities and Exchange Commission (SEC). This victory has brought a breath of fresh air to the market and the community that it has pushed the price of BTC above $27.5k from the $26k level. Bitcoin price is currently trading above the important 200-week weekly moving average before the close of the month and preventing a price correction to the $24.8k level. Interestingly, macro factors also favor the Bitcoin market as traders wait for core PCE inflation and employment data this week.
Fed Chairman Jerome Powell hinted at further interest rate hikes at the recent Jackson Hole meeting. If inflation is higher and the job market remains strong, the US Federal Reserve is expected to raise interest rates at the next FOMC meeting on September 21. The CME FedWatch tool shows an 86.5% probability of keeping interest rates unchanged at the next monetary policy meeting.
Traders are keeping an eye on core PCE inflation, NFP, and unemployment data to confirm the coming wave of price hikes. Markets expect core PCE inflation for July to be in line with the previous month at 0.2% and the Fed's main gauge of inflation reading 4.3%, up 0.1% from last month's core PCE data.
Additionally, markets forecast 170,000 jobs were created in the United States in August, down from 187,000 in July. The unemployment rate is expected to be at 3.5%. However, analysts believe the unemployment rate will rise due to weakness in the job market.
PCE needs to be below forecast to prompt the Fed to stop raising interest rates in September. Also, the increase in unemployment will push the Bitcoin price up. The US dollar index fell below the 103.50 level after Tuesday's high JOLT jobs opening data. Further declines in this will drive upward movement in BTC.
Meanwhile, this week proved to be bullish for the crypto market. A federal judge has granted victory to Grayscale Investment in a dispute with the United States Securities and Exchange Commission (SEC). Additionally, the SEC will rule on six Bitcoin ETFs. ETF applications submitted by Bitwise, BlackRock, VanEck, WisdomTree, and Invesco are expected to receive responses before the end of this week.
