Content of the article:


After reaching a record high of over $108,000 in December, Bitcoin is currently under short-term downward pressure due to changes in macroeconomic conditions and market sentiment. Factors such as a strong USD, increased volatility, and traders' caution have caused $BTC 's upward momentum to stall.



The main cause of short-term pressure


1. The strength of the USD:


The USD, measured by the Dollar Index (#DXY ), has risen sharply even though the U.S. Federal Reserve (Fed) cut interest rates by 25 basis points in mid-December. This unexpected price increase has broken long-standing resistance levels, making it difficult for analysts to explain.


2. High volatility:


The Volatility Index (VIX) increased after the Fed's press conference on December 18, creating market signals supporting the likelihood of a short-term adjustment.


3. Cautious market sentiment:


Many investors, such as Joe McCann – CEO of Asymmetric, have shifted to holding large cash positions to flexibly seize buying opportunities when prices drop. According to McCann, these are good opportunities to profit from price differentials in the short term.



The Bitcoin market situation



While short-term pressures are increasing, long-term factors still provide positive expectations. Changes in legal policy and the interest of institutional investors continue to support the spot market. However, structural risks, such as the U.S. nearing its debt ceiling in mid-January, could increase volatility and create more instability.



According to crypto trading firm QCP Capital in Singapore, although favorable legal stories continue, the market will not easily break out in the short term. Macroeconomic conditions, including the policy of #Fed and the strength of the USD, will continue to shape Bitcoin's path ahead.



Opportunities for investors?



Although the market faces turmoil, this could also be an opportunity for strategic investors. Short-term price declines, if leveraged correctly, can yield good profits in this volatile market.



⚠ Risk warning:


The cryptocurrency market is always inherently high-risk. Investors should be cautious, do thorough research, and only invest money they can afford to lose.