#Buy Bitcoin on dips#

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Hot Topic Overview

Overview

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, driven by bargain hunters. However, the US nonfarm payrolls report due out on Friday will test the market. The report is expected to show 164,000 new jobs added in December. Stronger-than-expected jobs data could exacerbate concerns about the Fed's hawkish stance, further pushing up bond yields and 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, which would be beneficial for risk assets, and Bitcoin could attempt to break through $100,000 again.

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Analysis

Bitcoin has seen some dip-buying recently, with prices rebounding to near $95,000. However, the market still faces a crucial test with the upcoming US jobs report, which could influence the Federal Reserve's monetary policy stance. If the jobs data comes in stronger than expected, it could intensify concerns about a hawkish Fed, further pushing up bond yields and putting pressure on risk assets, including Bitcoin. Conversely, if the data is weak, it could trigger market expectations of Fed rate cuts and shift market sentiment in favor of risk assets, potentially allowing Bitcoin to attempt a break above $100,000 again. Additionally, the US government's large holdings of Bitcoin could also have an impact on the market. Overall, the Bitcoin market is currently volatile, and investors need to closely monitor the US jobs report and the Fed's policy moves.

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Classic Views

Bitcoin buyers on dips are supporting the market, but the key jobs report could impact price action.

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A stronger-than-expected jobs report could exacerbate concerns about the Fed being hawkish, further pushing up real yields, which would be negative for risk assets.

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A weaker-than-expected jobs report could spark market expectations of Fed rate cuts, which would be positive for risk assets, including Bitcoin.

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The US government holds a significant amount of Bitcoin, and its selling could impact market movements.

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