According to Foresight News and reported by Decrypt, Bitcoin has recently faced downward pressure due to macroeconomic changes and market sentiment. Despite breaking through the historical high of $108,000 in December, Bitcoin is currently retracing due to a stronger dollar, increased volatility, and cautious attitudes among traders. Joe McCann, founder and CEO of Asymmetric, stated that market signals such as the hawkish Federal Reserve press conference on December 18 and a significant increase in the Volatility Index (VIX) have led to an increased probability of short-term declines. He believes that while the short-term outlook is bearish, the long-term outlook remains bullish.
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, the DXY broke through years of resistance levels, reflecting market dynamics of global liquidity constraints and safe-haven demand. Singapore cryptocurrency 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 may trigger market volatility. Analysts believe that Bitcoin's movement will continue to be closely related to Federal Reserve policy and dollar performance. Short-term adjustments provide investors with buying opportunities on dips, but market volatility may pose challenges for investors.
