#Buy Bitcoin on dips#

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Overview

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. However, Friday's US non-farm payrolls report will test this rebound. A stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields, which would be negative for risk assets. On the other hand, if the jobs data is weak, it could trigger market expectations of Fed rate cuts, which would be positive for risk assets. Therefore, the direction of Bitcoin prices will depend on the outcome of the jobs report and the Fed's policy direction.

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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. The report is expected to show 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 and making the outlook for risk assets more complex. On the other hand, 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. Therefore, Bitcoin's price trajectory will depend on the outcome of the jobs report and the direction of the Fed's monetary policy. Additionally, the US government's large holdings of Bitcoin could also influence market movements.

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Classic Views

Bitcoin buyers on dips are supporting the market, but key US jobs data could have a significant impact on 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 trigger market expectations of Fed rate cuts, shifting market sentiment in favor of risk assets.

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

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