Bitcoin experienced drastic fluctuations this morning and will continue to draw investors’ attention this week as it coincides with Super Tuesday, the Federal Reserve Chairman’s congressional testimony, and the release of the latest employment data.
In the early morning of today, Bitcoin once again broke through $64,200, reaching a new high for the year. However, selling pressure quickly emerged, causing a rapid drop of $2,000 within 5 minutes and briefly touching $62,300. Nevertheless, BTC quickly rebounded to $63,500, presenting a volatile market for both long and short positions.
Earlier, BTC’s volatility was fast and intense. Next, let’s analyze the potential events this week that may bring volatility to the market.
Firstly, a major focus on the US political stage is the upcoming Super Tuesday on March 5th. On this day, several states in the US will hold presidential primary elections and caucus meetings.
At present, former President Donald Trump is leading within the Republican Party, and it is predicted that he will secure 1,215 electoral votes around mid-March, surpassing the threshold to become the Republican presidential candidate, thereby ending the campaign opportunity for his opponent, former US Ambassador to the United Nations Nikki Haley.
Federal Reserve Chairman Jerome Powell will attend the House Financial Services Committee on March 6th at 10:00 am Eastern Time (11:00 pm Taiwan Time) to conduct the semi-annual monetary policy report. Following that, he will attend a hearing at the Senate Banking Committee on March 7th at 10:00 am Eastern Time (11:00 pm Taiwan Time).
International media generally expect that this hearing will focus on the issue of inflation and the Federal Reserve’s proposal to increase capital requirements for large banks. In addition, as problems in the commercial real estate market worsen, the focus of attention is not only on the recent financial report scandal involving the New York Community Bank but also on more than 20 other lending institutions that have come under close scrutiny by regulatory authorities.
The US will release the February ADP employment data and January JOLTS employment change data on March 6th, followed by the latest non-farm payroll report on March 8th. If the employment data continues to be strong, it may affect the evaluation of a rate cut by the Federal Reserve.
Related Reports:
– US January non-farm payroll “far exceeds expectations”; First round of rate cuts by the Fed expected to be postponed until June; BTC plummets and then rebounds to $43,000.
– Dovish prediction by the Federal Reserve “Two rate cuts in 2024; Fed action expected in the third quarter.”
– Historical lesson! If the Federal Reserve initiates “monetary easing policy,” the stock market usually plummets.
– Air raid warning! The US government will sell $114 million worth of Bitcoin, still holding over 210,000 BTC.