market sentiment

Viewpoint: Bitcoin faces short-term pressure, influenced by changes in macroeconomics 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 last December, Bitcoin is currently retracing 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 outlook is bearish in the short term, the long-term perspective remains bullish.In addition, the unexpected strengthening of the Dollar Index (DXY) has also 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. Singaporean crypto trading firm QCP Capital pointed out in a report to investors that although 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 performance of the dollar. The short-term adjustment provides investors with a buying opportunity on dips, but market volatility may pose challenges for investors.

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.

QCP Capital: Bitcoin remains firmly driven by market sentiment, with little impact from this week's Federal Reserve meeting

ChainCatcher news, Singaporean crypto investment firm QCP Capital stated today that earlier in the Asian session, Bitcoin surged past $106,500, reaching another milestone. In the past 12 hours, the total amount of short liquidations reached approximately $151 million, driving this rally, as the weekend market lacked liquidity and traders became overly complacent (the funding rate on Deribit briefly turned negative), leading to a squeeze on short positions in the market. The Bitcoin-to-gold ratio reached an all-time high during this wave, further highlighting Bitcoin's status as "digital gold" and solidifying its position as a more popular store of value than traditional gold.The inclusion of MicroStrategy in the Nasdaq 100 index further boosted market sentiment. Michael Saylor hinted that even if the spot price exceeds $100,000, the company may continue to purchase Bitcoin. This inclusion could attract passive capital into MicroStrategy's stock, thereby indirectly making it easier for the company to raise funds to buy Bitcoin. This week's Federal Reserve meeting seems to be merely background noise for Bitcoin, as its movements remain firmly driven by market sentiment. Although the likelihood is low, if the Federal Reserve and Powell take an extremely dovish stance, it could still provide support for further increases in Bitcoin.
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