Bitcoin slipped 1.23% to $56,480 on Thursday, December 2. The price spent the day in the range of $55,778-57,368. The leading cryptocurrency has been hovering around the $57,200 mark for the fifth consecutive day as market participants have taken a wait-and-see stance. While no new drivers have emerged for the cryptocurrency market, day traders are eyeing the external backdrop: the upcoming FOMC meeting, the spread of the new Omicron strain, strengthening of the dollar as the Fed prepares to taper its monthly bond buying purchases due to rising inflation, and rising tensions between the US and China due to Taiwan.
As for Bitcoin, investors are advised to watch for a congressional committee meeting on December 8, as US authorities might attempt to mar the reputation of cryptocurrencies. SEC CEO Gary Gensler has claimed that Bitcoin is a threat to the banking system, which is why the SEC should have power to oversee BTC trading.
On Friday, December 3, all eyes will be on US non-farm payrolls for November. This report is a key data point for the FX and stock markets, as this is the last report before the Fed meeting that is scheduled for December 14-15. As long as the BTCUSD pair trades above $55,700 the technical picture looks good for continued upside. Heightened volatility can be expected from 13:30 to 16:00 GMT.