#Buy Bitcoin on dips#

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Overview

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. Prices recently tested the key 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 rebound. The report is expected to show an addition of 164,000 jobs in December. 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 employment data is weak, it could trigger market expectations of a Fed rate cut, which would be positive for risk assets.

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Analysis

The Bitcoin market has seen some stabilization, with prices rebounding to near $95,000, driven by bargain hunters. However, the market still faces a crucial test with the key employment report, which could influence the Federal Reserve's monetary policy and, in turn, the performance of risk assets. If the employment data is stronger than expected, it could intensify concerns about a hawkish Fed, further pushing up bond yields and putting pressure on risk assets like Bitcoin. Conversely, if the data is weak, it could trigger market expectations of a Fed rate cut, benefiting risk assets. Additionally, the $18.5 billion worth of Bitcoin held by the US government could also impact the market. Overall, the Bitcoin market is currently in a critical period, requiring close attention to the outcome of the employment report and the Fed's policy moves.

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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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A stronger-than-expected jobs report 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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A weaker-than-expected jobs report could spark market expectations of Fed rate cuts, leading to a significant shift in market sentiment in favor of risk assets.

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The US government holds a significant amount of Bitcoin, and its selling could have a major impact on the market.

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