According to a report by Decrypt, Bitcoin is currently facing downward pressure in the short term due to changes in the macroeconomic environment and market sentiment. Despite breaking the historical high of $108,000 in December last year, Bitcoin has pulled back due to a stronger dollar, increased volatility, and cautious attitudes from traders. 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, although the short-term outlook is bearish, the long-term outlook remains bullish. Additionally, 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 multi-year resistance levels, reflecting the market dynamics of global liquidity constraints and risk aversion demand. Singaporean crypto trading firm QCP Capital highlighted 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 performance of the dollar. The short-term adjustment provides investors with a buying opportunity on dips, but market volatility may pose challenges for investors.

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