#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, with order books showing dip buyers. Recently, Bitcoin prices tested the long-term support zone of $90,000-$93,000 and successfully prevented at least six declines. However, the upcoming US non-farm payrolls report will test this latest rebound, with expectations for 164,000 new jobs added in December. A stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, thus complicating the situation for 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, potentially allowing Bitcoin prices to 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. If the jobs data comes in stronger than expected, it could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields and complicating the outlook for risk assets. Conversely, if the data is weak, it could trigger market expectations of Fed rate cuts, leading to a significant shift in market sentiment in favor of risk assets and pushing Bitcoin to attempt a break above $100,000 again. Currently, market sentiment remains cautious, and investors need to closely monitor the release of the jobs report and be prepared for various scenarios.

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Classic Views

Bitcoin buyers on dips are supporting the market, but key US jobs data could impact prices.

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Stronger-than-expected jobs data could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields, which would be negative for risk assets.

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If jobs data is weak, it could spark market expectations of Fed rate cuts, shifting market sentiment in favor of risk assets and pushing Bitcoin prices higher.

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The US government holds a significant amount of Bitcoin, and if they choose to sell, it could have a major impact on the market.

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