1 min readSeveral factors could bolster Bitcoin's price over the next six months.
Beyond the anticipated approval of a spot-based ETF, various economic and political dynamics are expected to exert influence.
Firstly, the possibility of a Government Shutdown on November 17th is likely to rekindle anxieties concerning the U.S. government's fiscal health and its capacity to manage its debt. This has, in the past, been positive for Bitcoin, which at times has presented itself as a suitable flight to safety.
The FED is unlikely to raise rates again, with CME futures pricing in less than a 15% implied probability of a rate hike in either December or January. This is in line with the fact that the high-interest rate environment is starting to adversely affect the U.S. economy, reflected by weak payroll growth in October, and a sharp decline in PMIs. In light of this, the monetary policy underpinning Bitcoin may appear increasingly appealing.
Lastly, we have seen continued strength in European ETP flows. Last week saw $261 million dollars of inflows, taking the total to $767 million for the year, surpassing the $736 million seen in the whole of 2022.
