According to Foresight News, as reported by Decrypt, Bitcoin has recently faced downward pressure due to macroeconomic changes and market sentiment. Although it broke through the historical high of $108,000 last December, Bitcoin is currently pulling back due to the strengthening US 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 short-term downside probability. He believes that although the short-term outlook is bearish, the long-term remains bullish.
Additionally, the unexpected strengthening of the US Dollar Index (DXY) has also become a focal point. After the Federal Reserve cut interest rates by 25 basis points, the DXY broke through long-standing resistance levels, reflecting market dynamics of global liquidity constraints and safe-haven demand. Singapore's crypto trading firm QCP Capital pointed out in a report to investors that despite favorable regulatory narratives supporting the spot market, the market environment at the beginning of January may be unstable due to structural risks such as the debt ceiling issue, which could trigger market volatility. Analysts believe that Bitcoin's trajectory will continue to be closely related to Federal Reserve policies and the performance of the US dollar. Short-term adjustments provide investors with opportunities to buy on dips, but market volatility may pose challenges for investors.
