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Risk assets are experiencing declines as the dollar index and Treasury yields respond to Friday's unexpectedly strong nonfarm payrolls report and risks posed to certain insurance companies. Bitcoin (BTC) has decreased by 2%, currently moving within the critical support zone between $90,000 and $93,000, while alternative cryptocurrencies are facing larger losses. Ethereum (ETH) has dropped to its lowest level since December 21, further complicating XRP's bullish outlook.

Reports suggest that Michael Saylor indicated a potential for another Bitcoin acquisition by MicroStrategy, which could disrupt negative market sentiment. According to Valentin Fournier, analyst at BRN, the firm's recent $100 million purchase had limited market impact but aligns with ongoing interest.

Moreover, with some investment banks suggesting that the Federal Reserve's rate-cutting cycle may be at an end, there's growing concern regarding the possibility of a rate hike, prompting speculation about significant price declines. Observers have forecasted potential price deflation to $70,000, before a possible recovery.

In the short term, the crypto market is expected to focus on President-elect Donald Trump's inauguration on January 20 and the ongoing distribution of claims from FTX, according to Coinbase Institutional.