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.

4E: Powell suppresses interest rate cut expectations, U.S. stocks hit the largest weekly decline in two months, market sentiment declines

ChainCatcher news: After a strong surge following the election, market sentiment has somewhat cooled last week. Federal Reserve Chairman Powell seems intent on slowing down interest rate cuts, which has dampened the excitement generated by the "Trump trade."According to 4E monitoring, the three major U.S. stock indexes continued to weaken after reaching new highs on Monday. On Friday, a significant cut in interest rate expectations put pressure on the stock market, causing it to decline across the board. The S&P 500 index fell 2% over the past five trading days, erasing half of its gains since the election. The Dow Jones Industrial Average dropped 1.24% this week, while the Nasdaq Composite fell 3.15%, marking its largest weekly decline since September.Bitcoin, after breaking through $93,000 on Wednesday to set a new all-time high, began to consolidate amid the pullback in U.S. stocks but showed resilience. It is currently trading in a narrow range around the $90,000 mark. As of the time of writing, Bitcoin is priced at $90,799, with a 7-day increase of nearly 12%. Other altcoins followed Bitcoin's fluctuations, with SOL benefiting from the MEME frenzy, demonstrating strong rebound and upward momentum.In the commodities market, the cooling of interest rate cut expectations from the Federal Reserve has led to a continued strengthening of the dollar, reaching its highest level in over a year. The dollar index rose 1.6% last week and has increased for seven consecutive weeks. The strong dollar continues to pressure commodities, with spot gold falling about 4.6% last week, marking its largest weekly decline in three years, and retreating nearly 9.3% from its historical high. U.S. oil fell nearly 5%, while Brent crude dropped nearly 4%.Current market focus is on inflation concerns following the Trump administration's rise and the Federal Reserve's more hawkish outlook. Powell's speech on Thursday essentially indicated that Fed officials do not need to rush into rate cuts, leading traders to significantly reduce their rate cut expectations. The retreat in sentiment and uncertainty in monetary policy have increased upward resistance in the market. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodities like gold, and foreign exchange. It recently launched a USDT stablecoin financial product with an annualized return of 5.5%, providing investors with potential hedging options. 4E reminds you to be aware of market volatility risks and to allocate assets wisely.
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