#Bitcoin Breaks Support#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support area, having broken below the $90,000 to $93,000 support zone. This is largely due to the decline in risk assets, as the US dollar index and US Treasury yields rose after the release of the non-farm payrolls report on Friday. Some investment banks believe that the Fed's rate cut cycle is over, with Bank of America even hinting at possible rate hikes, further fueling the Bitcoin decline. Despite this, MicroStrategy founder Michael Saylor has said he may buy Bitcoin again, which could alleviate some of the negative sentiment. However, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating waning domestic demand in the US, making Bitcoin's future trajectory even more uncertain.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below support levels, driven primarily by an overall decline in risk assets, a rising US dollar index and US Treasury yields. Following the release of the Nonfarm Payrolls report, market expectations for a Fed rate cut have weakened, with a possibility of a rate hike, prompting investors to sell off risk assets, including Bitcoin. Additionally, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since 2019, indicating a weakening of domestic demand in the US. Some analysts believe Bitcoin could fall to $70,000 before rebounding. Currently, the market is focused on President-elect Donald Trump's inauguration on January 20th and the ongoing FTX claim distribution.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces the risk of losing key support levels as traders sell risk assets, with the US dollar index and US Treasury yields rising.
Some investment banks believe the Fed's rate-cutting cycle is over, and Bank of America has hinted at a potential rate hike, adding to the risk of a Bitcoin decline.
Market consensus is that Bitcoin prices will fall to $70,000 before climbing again.
The 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, signaling weaker domestic demand in the US.