Market Overview - Bitcoin (BTC) has experienced a decline, dropping to $86,000 from a weekend high of around $88,000, while the CoinDesk 20 Index (CD20) fell to 2,758 points from 2,816 [1][2] Investor Sentiment - BTC is on a four-week losing streak, primarily due to institutional capitulation, leading to diminished investor confidence and making a quick recovery to $100,000 unlikely [2] - Analysts are cautious, with many avoiding clear directional views on the market [2] Short-term Outlook - A potential rebound is anticipated; however, if BTC falls below the $80,000 level, the likelihood of facing a more challenging period increases significantly [3] Macro Economic Factors - The possibility of a December interest-rate cut in the U.S. has emerged, with a 75% chance assigned by traders following dovish remarks from Federal Reserve officials [4] - Upcoming U.S. economic data releases, including producer price index, retail sales, GDP, and PCE, could influence these odds if they indicate cooling inflation and slower growth [4][5] Investment Strategy Shift - The current economic environment is characterized by "fiscal dominance/state capitalism," where governments are taking the lead in managing debt-to-GDP ratios, contrasting with the previous Fed-dominant era [6][7] - Investors are advised to reconsider their reliance on Fed-driven market booms, as the focus has shifted towards assets benefiting from fiscal spending and those with store-of-value appeal [7]

Crypto Market Overview - Bitcoin (BTC) and the broader crypto market experienced a decline on Thursday, with the CoinDesk 20 Index (CD20) falling over 1% to 4,163 points, despite the Federal Reserve's minutes indicating a bias towards more rate cuts [1] - The strength of the dollar index (DXY) is contributing to the decreased appeal of USD-denominated assets, including cryptocurrencies [1] U.S. Economic Context - The ongoing U.S. government shutdown is causing traders to remain cautious, awaiting Fed Chair Jerome Powell's speech for insights on future policy direction [2] - Recent jobs and inflation data are temporarily on hold, adding to the uncertainty in the market [2] Global News Impact - President Trump's announcement of a peace deal between Israel and Hamas has brought some optimism, with potential hostage releases expected by Monday, although oil prices have slightly increased above $62, indicating trader caution regarding the agreement's sustainability [3] Developments in the Crypto Sector - Helius, a digital asset treasury company for Solana (SOL), plans to acquire at least 5% of Solana's supply [4] - Coinbase has launched decentralized exchange (DEX) trading within its app for U.S. users, excluding New York [4] - Polymarket's founder hinted at a potential launch of their native token, POLY [4] Traditional Market Insights - Gold prices remain strong above $4,000, showing resilience against the dollar's rally [5] - S&P 500 futures are stable near record highs, while JP Morgan's CEO Jamie Dimon expressed significant concern about a potential major stock market drop in the coming months [5]