#Bitcoin may consolidate#

The Bitcoin market is facing the possibility of consolidation in the near term. The Matrixport weekly report points out that macroeconomic headwinds and global liquidity changes could be the main factors driving Bitcoin into a consolidation phase. While ETF inflows remain steady, the Fed's hawkish stance could limit further upside for Bitcoin. The report argues that Bitcoin's rally is more influenced by Fed policy than ETF launches. Technically, the "shooting star" candlestick pattern suggests that the medium-term uptrend may be nearing its end. With low implied volatility, options are seen as an effective risk management tool, allowing traders to capture upside opportunities with call options or protect gains with put options. Additionally, the bearish trend in the first week of 2025 has further fueled market concerns about Bitcoin consolidation, with prices falling from $102,000 to $91,000, although a rebound to $95,000, the weekly candle still looks bearish. Overall, macroeconomic challenges, Fed policy, and technical signals all point to a potential consolidation phase for Bitcoin, and investors need to carefully monitor market developments and take appropriate risk management measures.