In a dramatic display of market volatility, Bitcoin (BTC) has experienced a rollercoaster weekIt began on December 5, when the cryptocurrency surged to an all-time high (ATH) of $104,088. This significant spike was short-lived; by December 6, BTC faced a sharp decline, plummeting to a low of $90,000 early in the morningThe price soon entered a correction phase, with the asset bouncing back above $100,000 several timesHowever, by the early hours of December 10, Bitcoin began another steep descent, landing at a low of $94,800, representing a weekly drop exceeding 13%. As of now, BTC is oscillating around the $97,000 markThis volatility has also negatively impacted altcoins, with many cryptocurrencies witnessing a downward trend alongside Bitcoin’s fluctuations.

According to data from Coinglass, the cryptocurrency market saw a staggering liquidation of $1.574 billion in contracts over the past 24 hours, affecting 511,000 tradersLong positions accounted for $1.388 billion of the liquidations, while short positions contributed $185 million.

Market analysts are keeping a close eye on the current state of the U.S. stock market, which appears to be approaching levels not seen since the bubble economy of 2000. Despite the downturn, there remains an optimistic outlook for U.S. equitiesAs of yesterday's market close, the three major stock indices saw collective declines; the Dow Jones fell by 0.54%, the S&P 500 dropped by 0.61%, and the NASDAQ slipped by 0.62%. From a macroeconomic perspective, investors are waiting for this week’s inflation report, hoping to gauge the Federal Reserve's future policy adjustmentsThe regulatory troubles faced by NVIDIA amid antitrust investigations contributed to its 4% drop during trading hours, subsequently dragging down technology stocksConversely, Chinese concept stocks have been on a positive trajectory.

Financial experts speculate that these conditions might drive the U.SDollar Index (DXY) to new heights

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Strategists at Société Générale have suggested that re-inflationary policy could propel the S&P 500 index to reach 6,500 points by April next year, up from its previous close of 6,052.85 points.

Despite the turbulence in the market, institutional enthusiasm for Bitcoin seems undeterredMicroStrategy, a key player in Bitcoin investments, announced on December 9 its acquisition of an additional $2.1 billion worth of Bitcoin, bringing its total holdings to over $41 billionThe company has garnered attention for financing these purchases through issuing stocks and fixed-income securities, becoming one of the top-performing assets of the yearMichael Saylor, the co-founder of MicroStrategy, has intentions to raise $42 billion over the next three years to expedite a strategic pivot towards Bitcoin.

Simultaneously, analysts from Bernstein, a research and brokerage firm, maintain their bullish stance on Bitcoin, predicting that $100,000 is not the ultimate threshold for BitcoinThey foresee BTC potentially reaching a cycle peak of $200,000 by the end of 2025.

On an international scale, Russian lawmakers have proposed the establishment of a national Bitcoin reserve to counter economic sanctionsAccording to reports by Rhythm Information, Anton Tkachev, a member of the Russian parliament, suggested positioning Bitcoin as a tool against sanctions and a means to ensure financial stabilityIn a formal appeal to the finance minister, he recommended creating a Bitcoin reserve akin to traditional foreign currency reserves, arguing that cryptocurrency offers unique advantages in mitigating risks associated with sanctions, inflation, and currency volatilityThis proposition aligns with broader moves by the Central Bank of Russia to incorporate digital assets into its international payment systems.

In the context of macroeconomic data, the U.S. job market exhibited a complex picture in November, with non-farm payrolls increasing by 227,000 jobs, marking the largest gain since March 2024. While this superficially appears encouraging, underlying weaknesses are evident

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