#Bitcoin falls under pressure#
Hot Topic Overview
Overview
Bitcoin has been under pressure recently and is now at risk of losing a key support area. The dollar index and US Treasury yields rose on the back of a positive non-farm payrolls report, causing a general decline in risk assets, including Bitcoin, which fell by more than 2% and is now hovering between $90,000 and $93,000. Some investment banks believe the Fed’s rate-cutting cycle has come to an end, with Bank of America even suggesting a possible rate hike, further exacerbating the bearish sentiment towards Bitcoin. In addition, the 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, suggesting weakening demand in the US. Despite this, MicroStrategy founder Michael Saylor has indicated that he may buy Bitcoin again, although the impact on the market will be limited. The market is currently anticipating a fall in Bitcoin prices to $70,000, followed by a subsequent rebound.
Ace Hot Topic Analysis
Analysis
Bitcoin has come under pressure recently, primarily due to the overall decline in risk assets, while the US Dollar Index and US Treasury yields have risen on the back of Friday’s nonfarm payrolls report. Additionally, the Palisades wildfire has posed a risk to the insurance industry and some property and casualty insurers, adding to market risk aversion. Bitcoin has dropped more than 2%, hovering between key support levels of $90,000 and $93,000, while other cryptocurrencies have seen even larger declines. Some investment banks believe the Fed’s easing cycle is over, with Bank of America even hinting at the possibility of interest rate hikes, further increasing the downside risk for Bitcoin. Some observers believe that Bitcoin’s price could drop to $70,000 before recovering. Meanwhile, the 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, indicating weakening domestic demand in the US. In the near term, the crypto market is likely to watch 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 risks losing a key support level as traders sell risk assets.
The dollar index and U.S. Treasury yields benefited from Friday's nonfarm payrolls report, putting pressure on Bitcoin.
Some investment banks believe the Fed's rate-cutting cycle is over, with Bank of America hinting at a potential rate hike, further intensifying the downward pressure on Bitcoin.
The consensus is that Bitcoin prices will decline to $70,000 before rising again.