Bitcoin and the broader crypto market saw some buying interest last weekend. At the time of writing, the price of Bitcoin has increased by 5.38%, trading at a price of $67,336 and a market capitalization of $1,323 billion. Similarly, the altcoin space is also showing momentum, with Ethereum (ETH) up 4.72% and approaching $3,500.
US to release core PCE price index data
This week, on March 29th, the US will release the annual core personal consumption expenditure (PCE) price index for February. This data is particularly important because it represents a key indicator that the Federal Reserve System closely monitors.
In parallel with the release of this important economic indicator, Federal Reserve Chairman Jerome Powell will speak at an event hosted by the Federal Reserve Bank of San Francisco. Powell's speech is expected to focus on the intersection of macroeconomics and monetary policy and provide insight into the central bank's outlook and decision-making process. Chairman Powell last week said he was dovish on monetary policy, saying a strong labor market was no reason to cut rates again.
Amid these developments, market analysts are keeping an eye on the possibility that the Federal Open Market Committee (FOMC) will leave interest rates unchanged at its next meeting in May. There is currently an 89.1% chance that such a decision will be made, reflecting general sentiment regarding the stability of monetary policy.
Bitcoin price volatility ahead of halving
Glassnode, a leading on-chain data provider, has issued a warning to traders, urging them to prepare for potential volatility surrounding the upcoming Bitcoin halving event. Glassnode highlights the importance of monitoring exchange-traded fund (ETF) activity as a key measure of short-term market sentiment, highlighting the impact posed by Bitcoin ETFs in mitigating the impact of the halving during this cycle. It emphasizes the importance of institutional demand.
The expected reduction in the rate of new Bitcoin issuance, known as the halving, has historically been a pivotal event in the trajectory of Bitcoin's price. However, Glassnode suggests that the impact of the halving on the current cycle could be mitigated by the influx of institutional demand driven by the introduction of Bitcoin ETFs.
