#Buy Bitcoin on dips#

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Overview

The Bitcoin market is currently experiencing some stability, with prices rebounding to near $95,000, driven by bargain hunters. However, Friday's US non-farm payrolls report will test this latest rally, as a stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields and complicating the outlook for risk assets. On the other hand, if the data is weak, it could trigger market expectations of Fed rate cuts and shift market sentiment significantly in favor of risk assets. Therefore, the future direction of Bitcoin will depend on the outcome of the jobs report, as well as whether the US government will sell its Bitcoin holdings.

Ace Hot Topic Analysis

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Analysis

The Bitcoin market has seen some stabilization, with prices rebounding to near $95,000 as order books show dip buyers. However, the Bitcoin dip-buying remains vulnerable to the key jobs report. The US nonfarm payrolls report due out on Friday will test this latest rally, 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 real yields and complicating the outlook for risk assets. On the other hand, a weak reading could trigger expectations of Fed rate cuts and shift market sentiment significantly in favor of risk assets. Therefore, Bitcoin's trajectory will largely depend on the outcome of the jobs report and the direction of Fed policy.

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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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Weaker-than-expected jobs data could spark market expectations of Fed rate cuts, leading to a significant shift in market sentiment in favor of risk assets, pushing Bitcoin prices higher.

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The US government's large holdings of Bitcoin could impact market movements. If the government were to sell, it could put pressure on prices.

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