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No miracle on the horizon for Bitcoin, even with Trump’s swearing-in on the radar. Right now, the flagship crypto displays behavior as unpredictable as a political speech. Despite a rather healthy American economy, BTC seems to be struggling with the employment numbers. What do the experts say? And above all, can the crypto market still hope for a recovery?
Bitcoin wavers below the $95,000 mark
After briefly touching $92,000 before rising again, the Bitcoin price is sinking into knife-edge volatility. This reaction is labeled “bearish” by several analysts, in complete contradiction with the good employment figures in the U.S.
Markets freaking out on a very bullish employment reading. Short-term it's a bearish overreaction as less jobs = more leeway for rates to stay high. BUT strong jobs numbers like today actually means the bull run can likely go a lot longer than thought. This was the best reading… pic.twitter.com/cSZCFmd8co
— Charles Edwards (@caprioleio) January 10, 2025
Charles Edwards, founder of Capriole Investments, finds it amusing:
“ The markets are panicking in the face of good news. However, this data could prolong the bull run longer than expected. “
Concern is growing, as a return of Bitcoin below $90,000 could be catastrophic:
- The weekly RSI of the crypto market is on the brink of its support channel, a critical warning signal;
- A drop below $88,000 would trigger a general decline of 5 to 10% in the crypto market;
- Investors are hoping for a quick recovery before the end of the week to avoid a prolonged downturn.
The memory of the March 2020 crash looms over people’s minds. Yet, some optimists see in this turbulence an opportunity.
The coming days will be decisive in determining between a rebound and a bearish spiral.
Crypto market: when the economy goes awry
It’s not just Bitcoin that is on a roller coaster. The entire crypto market is caught in an economic vise. Bond yields are reaching alarming highs, and markets are now anticipating an even more restrictive monetary policy from the Fed.
#Bitcoin has taken the liquidity last night.
Unemployment was more positive than expected.
However, the treasury markets & yields seem to be at a tipping point and the system is cracking.
The yields can't really go way higher & the initial response is already captured.
Very…
— Michaël van de Poppe (@CryptoMichNL) January 10, 2025
Michaël van de Poppe, a well-known analyst, tones it down:
“ The system is cracking, but a bullish trend could emerge within two weeks. ”
Despite these alarming signals, several elements show that the market has not yet said its last word:
- The current volatility, certainly concerning, creates buying opportunities for patient investors;
- Altcoins are showing signs of resilience and could outpace Bitcoin during the next rebound;
- The probabilities of rate cuts by the Fed in January remain low but not negligible, offering a glimmer of hope.
However, the specter of a brutal adjustment still looms. If the price consolidation fails in the short term, the market could plunge into a new bearish phase.
Moreover, Grayscale seeks to reassure: despite the strength of the dollar and a restrictive monetary policy weighing on the crypto market, experts mention a bullish future. Patience is essential for investors in search of a rebound.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
