Bitcoin has had a very volatile start to a new trading week, seeing its weekly close above $100,000.

Weekly closing records do not last long and analysis points out that the markets need to fill the $10,000 downward wick remaining from last week.

Consumer Price Index (CPI) week is starting and there are less than 10 days left before the US Federal Reserve announces its interest rate decision.

China announced its first policy easing move in 15 years, starting in 2025. Microsoft will vote on its decision to create a Bitcoin reserve, and this could be a big week for corporate Bitcoin adoption.

BTC price analysis shows that the market characterizes “choppy” conditions in the short term, and the next target is stated to be $110,000. On December 8, Bitcoin made a last-minute rally, setting a new weekly closing record above $100,000.

The first six-figure close was short-lived, with BTC/USD falling below $99,000 and at the time of writing, down 2.8% on the day, according to data from Cointelegraph Markets Pro and TradingView. “It has yet to manage to stay above $101,000,” trader Skew noted in his latest market analysis.

Skew explained that nearby resistance factors are preventing the bulls from moving higher towards price discovery. “We are looking for strength and demand from here to push the market higher and confirm the $98,000 zone as support. Otherwise, continued weakness means waiting for a while,” he added.

Consumer Price Index (CPI) data stands out as the highlight of this week’s US macroeconomic calendar. Ahead of the Federal Reserve’s interest rate decision, markets are driven by growing expectations that policy easing will continue.

The latest data from CME Group’s FedWatch Tool indicates that there is an 85% probability that the Federal Reserve will cut interest rates by 0.25 points after its meeting on December 18.

Authorities are struggling with a dilemma where they face rising unemployment and inflation, creating an environment known as “stagflation.”

“Everyone is focused on CPI and PPI inflation data because markets are hoping for another 25 basis point rate cut to be finalized,” trade source The Kobeissi Letter said, also referring to the upcoming Producer Price Index (PPI) release.

More unemployment data will be announced along with PPI, and crypto markets will be especially sensitive to this data in 2024.

“The median duration of unemployment in the US increased to 10.5 weeks in November, the longest duration in 3 years. At the same time, the median duration of unemployment increased to 23.7 weeks, the highest level since April 2022,” he said. added Kobeissi at the weekend.

A classic macro boost for Bitcoin could come from China in 2025. China has announced plans to ease fiscal policy for the first time since 2010, a move seen as highly symbolic by risky asset investors.

This move by China could have a significant liquidity increase effect on crypto markets. Earlier this year, fiscal stimulus injections in China had an immediate impact on the BTC price.

When analyzing 10-year bond yields, Dan Tapiero, founder and CEO of 10T Holdings, said they are “the most important macro indicator in the world right now.”

However, investment research firm HFI Research pointed out that liquidity changes will generally be beneficial for bonds.

Institutional Bitcoin adoption could make headlines in the coming days as tech giant Microsoft will vote on adding BTC to its balance sheet. With a presentation from MicroStrategy CEO Michael Saylor, Microsoft is now discussing adding a Bitcoin reserve.

A study last week suggested that MicroStrategy could withstand an 80% drop in the BTC price and it would not have a significant impact on its bottom line. Although Bitcoin has reached new all-time highs, it may face a prolonged period of consolidation and increasingly resilient levels.