#Buy Bitcoin on dips#

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Overview

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, driven by bargain hunters. However, the upcoming US nonfarm payrolls report will test this rebound. The report is expected to show an increase of 164,000 jobs in December. Stronger-than-expected employment data could exacerbate concerns about the Fed's hawkish stance, further pushing up real yields and putting pressure on risk assets. On the other hand, if the data is weak, it could trigger market expectations of Fed rate cuts, which would be positive for risk assets. Therefore, the direction of Bitcoin prices will depend on the outcome of the employment data release and the direction of Fed policy.

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Analysis

Bitcoin has seen some dip-buying recently, with prices rebounding to near $95,000. However, the market still faces a crucial test with the upcoming US jobs report. A stronger-than-expected jobs report is expected to intensify concerns about the Fed's hawkish stance, further pushing up real yields and putting pressure on risk assets. Conversely, a weak report could trigger market expectations of Fed rate cuts, benefiting risk assets. Additionally, the US government's large holdings of Bitcoin could also influence market movements. Overall, the Bitcoin market is currently in a state of uncertainty, and investors need to closely monitor the US jobs report and the Fed's policy direction.

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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 is negative for risk assets, including Bitcoin.

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If jobs data is weak, it could spark market expectations of Fed rate cuts, which would be positive for risk assets, and Bitcoin could again attempt to break through $100,000.

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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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