#Buy Bitcoin on dips#
Hot Topic Overview
Overview
The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. Recently, Bitcoin prices tested the long-term support zone of $90,000-$93,000, which has successfully prevented at least six declines since the second half of November. However, the upcoming US non-farm payrolls report will test this latest rebound. A stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, putting pressure on risk assets. On the other hand, if the jobs data is weak, it could trigger market expectations of a Fed rate cut and shift market sentiment significantly in favor of risk assets, allowing Bitcoin to attempt to break through $100,000 again.
Ace Hot Topic Analysis
Analysis
Bitcoin is facing a key test with the upcoming jobs report, with the market having regained some stability, with BTC climbing back to near $95,000 as order books show dip buyers. Prices tested the long-term support zone of $90,000-$93,000 late Wednesday, an area that has successfully stopped at least six dips since the second half of November. However, Friday's US nonfarm payrolls report will test this latest rebound. A stronger-than-expected jobs report could exacerbate concerns about a hawkish Fed, further pushing up inflation-adjusted bond yields, complicating the outlook for risk assets. These yields have been rising due to inflation concerns, causing BTC to plummet from $102,000 to $93,000 in the past four days. The prevailing Fed-driven pessimism means any signs of weakness in the jobs data could trigger a strong market reaction, reigniting arguments for Fed rate cuts and shifting market sentiment significantly in favor of risk assets. If the data misses expectations by a wide margin, BTC could easily attempt $100,000 again, provided the US government, which holds about $18.5 billion in BTC, does not dump a large amount into the market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin buyers on dips are supporting the market, but key US jobs data could impact prices.
Stronger-than-expected jobs data could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields, which is negative for risk assets, including Bitcoin.
If jobs data is weak, it could spark market expectations of Fed rate cuts, which would be positive for risk assets, and Bitcoin could again attempt to break through $100,000.
The US government holds a large amount of Bitcoin, and its selling could have a significant impact on the market.