Macro

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: Macroeconomic market volatility has eased, and Bitcoin still needs key catalysts to break through $100,000

ChainCatcher news, QCP Capital's latest analysis points out that Bitcoin recently faced $1.5 billion in long liquidations, with the price plummeting by 3,000 points before rebounding at the critical support level of $95,000, currently consolidating in the $97,000-$98,000 range. This round of correction has also affected many altcoins.In terms of institutional entry, Bitcoin and Ethereum spot ETFs recorded net inflows for 8 and 11 consecutive days, respectively. Mining company Riot Platforms announced it would follow MicroStrategy's strategy, planning to issue $500 million in zero-coupon convertible bonds to purchase Bitcoin, a plan that has already garnered strong market demand. Notably, Microsoft shareholders will vote today on incorporating Bitcoin into the balance sheet. Although the board recommends against it, approval could lead to an unexpected surge. Meanwhile, reports indicate that Amazon shareholders are also pushing for Bitcoin to be used as a reserve asset.QCP points out that with the political situation stabilizing in France and South Korea, and China's commitment to launching economic stimulus policies, macro market volatility has eased. Bitcoin and Ethereum's short-term volatility remains high and leans towards put options. Analysts believe that a breakthrough of the $100,000 threshold for Bitcoin still requires key catalysts.

QCP Capital: The rapid rebound in the market shows strong buying power, with short-term macro risks but still bullish

ChainCatcher news, QCP Capital's latest analysis points out that established cryptocurrencies have experienced a significant upward trend in the past two weeks since 2021. XRP has broken through its historical high of $2 in February 2021, surging 400% to $2.90 since November. During the same period, veteran projects like ADA, HBAR, and XLM recorded increases of 300%, 800%, and 600% respectively, showcasing the strong momentum of traditional crypto assets.This round of increase is mainly driven by two factors: first, Trump's proposal in November to eliminate capital gains tax on cryptocurrencies issued by U.S. companies; second, potential pro-crypto cabinet nominees. It is reported that current Cantor Fitzgerald CEO Howard Lutnick may take over as Secretary of Commerce, as his company is currently in negotiations with Tether. Meanwhile, the SEC chair position may be taken over by pro-crypto Paul Atkins, replacing current chair Gary Gensler.Although South Korea's implementation of martial law temporarily caused Bitcoin to drop to $93,500, the subsequent rapid rebound in the market indicates strong buying power. The report notes that while inflation concerns have compressed the expectation for three Fed rate cuts by 2025, and geopolitical risks from Trump regarding China, Mexico, Canada, and BRICS countries still exist, the cryptocurrency market is still expected to continue its upward trend.Analysts believe that with the potential launch of crypto-friendly policies by Trump's team and the continued entry of institutional investors, the goal of Bitcoin breaking $100,000 and Ethereum reaching new historical highs is shifting from a dream to reality. Investors are advised to pay attention to the strong market momentum and seize investment opportunities.
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