The introduction suggests that in Q1 2025, Bitcoin could attract significant investments due to a $612 billion infusion into the US Treasury.
Impact of Liquidity on the Market
A $612 billion liquidity injection is expected in Q1 2025 into the US Treasury, potentially fueling Bitcoin's price growth. However, on January 8, 2025, Bitcoin fell below the $100,000 mark, dominant since December 19, 2024. Source: Cointelegraph Markets Pro.
Trump Presidency and Crypto Regulation
President-elect Donald Trump's inauguration on January 20 is expected to have a positive impact on the cryptocurrency industry. Nonetheless, delays in crypto regulation could negatively affect investor sentiment. Arthur Hayes, co-founder of BitMEX, suggested in his January 7 blog post that the liquidity influx could partially offset regulatory disappointment related to Trump’s crypto policies.
Bitcoin Forecasts and Expectations
Despite potential regulatory disappointments, analysts remain optimistic about Bitcoin's price trajectory. Some, including Binance Research, forecast that Bitcoin might exceed $100,000 before Trump's inauguration. The New York Stock Exchange also expressed confidence in Bitcoin's long-term prospects.
In conclusion, Bitcoin has the potential to grow in 2025 despite possible challenges with crypto regulation and political events in the US.
