CoinVoice has recently learned that, according to 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 last December, Bitcoin is currently retracing due to the strengthening dollar, increased volatility, and cautious trader attitudes. Joe McCann, founder and CEO of Asymmetric, stated that the Federal Reserve's hawkish press conference on December 18 and the significant rise in the Volatility Index (VIX) are market signals that have increased the probability of short-term declines. He believes that although the short-term outlook is bearish, the long-term remains bullish.
In addition, the unexpected strengthening of the US Dollar Index (DXY) has also become a focus. After the Federal Reserve cut interest rates by 25 basis points, the DXY broke through years of 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 despite favorable regulatory narratives supporting the spot market, the market environment in early January may be unstable due to structural risks such as the debt ceiling issue, which could trigger market volatility. Analysts believe that Bitcoin's movements will continue to be closely related to the Federal Reserve's policies and the performance of the dollar. Short-term adjustments provide investors with buying opportunities on dips, but market volatility may pose challenges for investors. [Original link]
