Bitcoin Fails to Rally on US-China Truce; What’s Next for Price?
Bitcoin declined despite a US-China trade truce, signaling weakened upward momentum overshadowed by Fed uncertainty.Summary
Bitcoin failed to rally last week, posting a 1.72% decline even after the resolution of the US-China tariff conflict, suggesting a profound weakening of the crypto market's upward momentum. While traditional safe-haven assets like gold retreated and risk assets like the Nasdaq 100 rose following the truce, Bitcoin dropped significantly from its October 10 levels. On-chain analysts attribute this weakness to the loss of momentum following a major derivatives market liquidation event on October 10.
Furthermore, the Federal Reserve's recent actions introduced new uncertainty. Although the Fed cut rates and ended Quantitative Tightening (QT), Chairman Jerome Powell suggested the Fed might not implement a December rate cut, causing immediate price drops and increasing ambiguity. Multiple Fed officials have since backed Powell's stance.
Consequently, the market's focus shifts to upcoming macroeconomic data, including employment figures and speeches from various Fed officials, which will heavily influence the probability of a December rate hold and dictate the next move for Bitcoin's price.
(Source：BeInCrypto)