【Block Rhythm】Bitcoin has made quite a stir these past two days. After rebounding from lows to 90,500 USD, it started probing downward again, touching 89,300 USD at one point, nearly failing to hold the support level near the 50-day moving average at 89,200 USD. This is already the third consecutive day of adjustment, in contrast to Monday when it just surged close to 95,000 USD.
Analysts from crypto trading companies point out that this wave of decline is mainly due to two reasons—significantly low trading volume, plus many traders cashing in profits at high levels. Although risk appetite rebounded briefly after the market opened at the beginning of the year, the market simply couldn't break through the key resistance at 95,000 USD. Over the past two days, it has shown obvious two-way volatility, and ETF funds have continued to see net outflows.
The Federal Reserve's rate cut expectations are also dampening the market. According to CME data, the probability of a rate cut at the January 28 Federal Reserve meeting is only 11.6%, down from 15.5% a week ago, and 2% a month ago.