QCP Capital: Bitcoin Rallies Then Retreats Following Dollar's Decline, Structural Pressure Reappears

According to an official post by QCP Capital, during the early Asian trading session, Bitcoin, gold, and silver all rose in sync as the US dollar experienced a sharp decline. This volatility coincided with comments from Powell, who suggested that the Department of Justice's subpoena to the Federal Reserve and the potential threat of criminal charges on Friday were seen as retaliation for the Fed's refusal to align with the interest rate policy path favored by President Trump, rather than issues related to Powell's congressional testimony in June.

Although the initial volatility might have hinted at another market attempt to position Bitcoin as a hedge against the fiat system or institutional risks, the subsequent price action clearly lacked momentum. Bitcoin failed to sustain a close above $92,000 and experienced a sharp pullback after the European market opened, echoing a pattern observed multiple times in the fourth quarter of last year. This inability to capitalize on the so-called bullish narrative highlights the structural resistance Bitcoin has faced since October 10th, with market optimism for a first-quarter breakout fading.

Looking ahead, near-term volatility risks are expected to remain elevated. The market will remain sensitive to the US CPI data released on Tuesday (January 13th), followed by the US Supreme Court's tariff ruling on Wednesday (January 14th), which could further impact cross-asset allocation and risk sentiment.