On January 9, QCP Capital's latest analysis indicated that Bitcoin rebounded to $95,200 last night after successfully testing the key support level of $92,500. However, after news emerged that the U.S. government plans to sell seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish in early Asian trading today. Cryptocurrency prices continue to be affected by macroeconomic headwinds, and the Federal Reserve's recently released minutes showed a more hawkish stance. The Fed stated that, given rising inflation risks, it will slow the pace of interest rate cuts. Yesterday's ADP employment survey added to macro uncertainty, showing a slowdown in private sector hiring and wage growth. This sharply contrasts with the strong job market depicted in Tuesday's JOLTS job openings data. In the options market, all term curves steepened, with the 3-6 month spread widening by 1.5 volatility points, and the 6-12 month spread rising above 1 volatility point. Trading desks continue to observe near-month volatility under pressure, with the at-the-money options expiring on January 17 down 3 volatility points from last night. QCP expects Bitcoin to consolidate in the $92,000-$95,000 range during today's U.S. market closure. If it breaks below $92,000, it may further test the $90,000 integer level.

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