Viewpoint: Bitcoin faces short-term pressure due to changes in macroeconomic conditions and market sentiment

ChainCatcher news, according to Decrypt, Bitcoin is facing downward pressure in the short term due to macroeconomic changes and market sentiment. Despite breaking through the historical high of $108,000 in December last year, Bitcoin has recently retraced due to a stronger dollar, increased volatility, and cautious trader attitudes. Joe McCann, founder and CEO of Asymmetric, stated that market signals such as the Federal Reserve's hawkish press conference on December 18 and the significant rise in the volatility index (VIX) have increased the probability of short-term declines. He believes that while the short-term outlook is bearish, the long-term remains bullish.

Additionally, the unexpected strength of the Dollar Index (DXY) has become a focal point. After the Federal Reserve cut interest rates by 25 basis points, the DXY broke through long-standing resistance levels, reflecting market dynamics of global liquidity constraints and safe-haven demand. Singapore-based crypto trading firm QCP Capital noted in a report to investors that while favorable regulatory narratives support the spot market, the market environment at the beginning of January may be unstable, as structural risks such as the debt ceiling issue could trigger market volatility. Analysts believe that Bitcoin's performance will continue to be closely related to Federal Reserve policies and the dollar's performance. The short-term adjustment provides investors with a buying opportunity on dips, but market volatility may pose challenges for investors.