#Buy Bitcoin on dips#
Hot Topic Overview
Overview
The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. Recently, Bitcoin prices tested the long-term support zone of $90,000-$93,000, which has successfully prevented at least six declines since the second half of November. However, the upcoming US non-farm payrolls report will test this latest rebound. The report is expected to show an addition of 164,000 jobs in December. A stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, which would put pressure on risk assets. On the other hand, if the jobs data is weak, it could trigger market expectations of a Fed rate cut, which would be beneficial for risk assets. Therefore, the direction of Bitcoin prices will depend on the outcome of the jobs report and the Fed's policy direction.
Ace Hot Topic Analysis
Analysis
Bitcoin is facing a crucial test with the upcoming jobs report, as the market has regained some stability with BTC climbing back near $95,000, supported by dip buyers. Prices tested the long-term support zone of $90,000-$93,000 late Wednesday, an area that has successfully stopped at least six dips since the second half of November. Friday's US nonfarm payrolls report will determine the fate of 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 inflation-adjusted bond yields and complicating the outlook for risk assets. Inflation fears and interest rate volatility could have contributed to BTC's rapid decline from $102,000 to $93,000 over the past four days. The prevailing Fed-driven pessimism means any signs of weakness in the jobs data could trigger a strong market reaction, reigniting arguments for Fed rate cuts and shifting market sentiment significantly in favor of risk assets. If the data comes in significantly better than expected, BTC could easily attempt $100,000 again, provided the US government, which holds about $18.5 billion in BTC, does not dump a large amount into the market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin dip buyers are playing a role in the market, supporting the price rebound to near $95,000.
Friday's US non-farm payrolls report will test the recent rally, a stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkishness, further pushing up inflation-adjusted bond yields, which is negative for risk assets.
If the jobs data is weak, it could trigger market expectations of a Fed rate cut, which would be positive for risk assets, and Bitcoin could again attempt to break through $100,000.
Inflation concerns and interest rate volatility may have caused Bitcoin prices to fall rapidly over the past four days, but dip buyers remain, and market sentiment may be shifting.