VanEck says policy clarity could make Q1 a ‘risk-on’ quarter

💡 DMK Insight

VanEck’s bullish outlook for Q1 hinges on improved fiscal and monetary conditions, but Bitcoin’s mixed cycle signals raise caution. Traders should pay attention to how fiscal policies and interest rate decisions unfold in the coming weeks, as these could significantly influence risk appetite across markets. If we see a sustained shift towards risk-on sentiment, assets like Bitcoin might experience upward pressure. However, the mixed signals from Bitcoin’s cycle indicate potential volatility, suggesting that traders should be prepared for rapid price swings. Monitoring key technical levels will be crucial; for instance, if Bitcoin can break above recent resistance levels, it could signal a stronger bullish trend. On the flip side, if fiscal visibility falters or monetary tightening resumes, we could see a sharp reversal in sentiment. This duality means traders need to stay nimble and watch for shifts in market sentiment, especially around major economic announcements or central bank meetings. Keep an eye on Bitcoin’s price action around these events to gauge potential entry or exit points.