#Bitcoin may consolidate#

The recent consolidation in the Bitcoin market has drawn attention. The Matrixport weekly report points out that macroeconomic headwinds and global liquidity changes are likely the main reasons for Bitcoin entering a consolidation phase. While ETF inflows have been steady, the Fed's hawkish stance may limit further upside for Bitcoin. The report suggests that Bitcoin's rally is more influenced by Fed policy than ETF launches. Technically, the "shooting star" candlestick pattern suggests that the medium-term uptrend may be nearing its end. With low implied volatility, options are seen as an effective risk management tool, allowing traders to capture upside opportunities through 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 a rebound to $95,000 occurred. However, the weekly candle looks potentially bearish. Overall, the market is divided on the future direction of Bitcoin, and investors need to closely monitor macroeconomic conditions, Fed policy, and technical signals, and take appropriate risk management measures.