#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, supported by bargain hunters. However, the upcoming US non-farm payrolls report will be a key test. Stronger-than-expected employment data could exacerbate concerns about the Fed's hawkish stance, further pushing up bond yields and putting pressure on risk assets. On the other hand, if the data is weak, it could trigger market expectations of a Fed rate cut, which would be beneficial for risk assets. Additionally, the US government's large holdings of Bitcoin could also influence market movements. Overall, the Bitcoin market is currently volatile, and investors need to closely monitor the employment 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, but this rally faces a key test with the US jobs report. Later on Wednesday, Bitcoin prices tested the long-term support zone of $90,000-$93,000, which has successfully stopped at least six declines since the second half of November. Friday's US nonfarm 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 a hawkish Fed, further pushing up real yields, which would complicate the outlook for risk assets. Inflation fears and interest rate volatility may have led to Bitcoin's rapid decline from $102,000 to $93,000 over the past four days. 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 to attempt to break through $100,000 again.

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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, turning market sentiment in favor of risk assets, and Bitcoin could again attempt to break through $100,000.

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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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