#Bitcoin may consolidate#

Recently, the Bitcoin market has shown signs of consolidation, attracting market attention. The Matrixport weekly report points out that macroeconomic headwinds and global liquidity changes are the main reasons for Bitcoin entering a consolidation phase. Although ETF inflows have been steady, the Fed's hawkish stance may limit further gains in Bitcoin. The report believes that Bitcoin's rally is more influenced by Fed policy than by the ETF launch. Technically, the "shooting star" candlestick pattern suggests that the medium-term uptrend may be nearing its end. With low implied volatility, options are considered an effective risk management tool, allowing traders to capture upside opportunities with call options or protect gains with put options. Additionally, the first week of 2025 also showed a bearish trend, with Bitcoin prices falling from $102,000 to $91,000. Although it rebounded to $95,000, the weekly candlestick pattern remains potentially bearish. Overall, the market is divided on the future direction of Bitcoin, but macroeconomic factors and Fed policy will continue to have a significant impact on the market.