Tuesday, 02 January 2024 12:17 GMT

" Today's markets analysis on behalf of Mahmoud Mashal, Senior Market Analyst, VT Markets Dubai'


(MENAFN- Your Mind Media ) Bitcoin edged higher on Monday at the start of a crucial week for the crypto industry. Attention’turns first to tomorrow’s procedural vote in the US Senate on the Digital Asset Market Clarity Act, after Republican senators circulated an updated version of the text. The revised draft incorporates amendments sought by Democrats. Legislative progress would reduce regulatory uncertainty and paint a bullish outlook for the cryptocurrency.

Wednesday's Federal Reserve decision presents a contrasting risk. Markets assign a high probability to an interest rate increase, with attention likely to focus on any disagreement among policymakers and expectations for future meetings. Treasury yields are already elevated, and any hint that further tightening remains likely could push them higher, creating a more challenging backdrop for Bitcoin. A more measured tone would have the opposite effect.
Persistent tensions in the Middle East are adding to that pressure by keeping crude prices elevated, sustaining inflation concerns and raising expectations for a hawkish monetary stance from the Fed. Institutional flows reflect caution, with spot Bitcoin ETFs recording net outflows in every session last week. Continued withdrawals would leave Bitcoin more vulnerable to the downside if the Federal Reserve expectations remain hawkish.



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