Market analysts report that Bitcoin has managed to reclaim the $89,000 mark after its price fell sharply earlier in the week. This technical level currently acts as a “trap door,” where dips below it often accelerate liquidations, while quick recoveries pull the price back into its previous consolidation range.
However, Bitcoin’s reaction occurs amidst a high-tension macroeconomic environment. The options market shows a growing demand for hedges against sharp downturns (gap-risk), driven by the combination of the Fed’s decision and the looming January 30th deadline to avoid a federal government shutdown.
The fiscal resolution in Washington and the reaction surrounding the Fed’s decision will be closely monitored in the coming days. A timely agreement to avoid a government shutdown could compress risk premiums, whereas a prolonged stalemate would force a generalized deleveraging in digital assets.
Source:https://coinmarketcap.com/currencies/bitcoin/
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