According to Foresight News, citing Decrypt, Bitcoin is facing downward pressure in the short term due to macroeconomic changes and market sentiment. Although it broke through the historical high of $108,000 in December last year, Bitcoin is currently correcting due to the strengthening of the US dollar, increased volatility and cautious traders. Joe McCann, founder and CEO of Asymmetric, said 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 downside. He believes that although it is bearish in the short term, it is still bullish in the long term.
In addition, the unexpected strength of the US dollar index (DXY) has also become a focus of attention. After the Federal Reserve cut interest rates by 25 basis points, DXY broke through the multi-year resistance level, reflecting the market dynamics of global liquidity constraints and risk aversion demand. In a report to investors, QCP Capital, a Singapore-based crypto trading agency, pointed out that although favorable regulatory narratives support the spot market, the market environment in early January may be unstable, as structural risks such as debt ceiling issues may trigger market volatility. Analysts believe that the trend of Bitcoin will continue to be closely related to the Fed's policies and the performance of the US dollar. Short-term adjustments provide investors with opportunities to buy on dips, but market volatility may bring challenges to investors.
