Bitcoin fell below its 20-day EMA after reaching a $94,000 peak, which experts attribute to political uncertainty ahead of Donald Trump's inauguration.
Bitcoin Decline: Current Market Status
On January 11, 2025, Bitcoin hit around $94,000, marking an over 8.5% decline from a local peak of $102,000 recorded on January 7. Currently, BTC trades below its 20-day exponential moving average (EMA), indicating bearish market factors. The relative strength index (RSI) is also down to 45, which is neither oversold nor overbought, showing a more than 20% decline since January 6. The crypto market may undergo a correction around Donald Trump's inauguration on January 20.
Impact of Trump's Inauguration on Crypto Market
Arthur Hayes from BitMEX predicts that once investors realize pro-crypto policies will not be swiftly implemented by Trump, it will trigger massive BTC sell-offs leading to a drop in digital assets. Ki Young Ju believes these policies depend on the US economic situation and the strengthening US dollar as a safe-haven asset.
Long-term Prospects and Stability Factors
Despite short-term fluctuations, analysts remain optimistic about Bitcoin's long-term price due to macroeconomic factors like rising public debt, currency devaluation, and massive liquidity injections by the Federal Reserve. While indicators suggest a correction phase, global economic factors support long-term stability.
Though Trump's upcoming inauguration may induce market corrections, overarching economic factors keep Bitcoin's long-term outlook stable. Investors should remain vigilant and well-informed to navigate these turbulent waters successfully.
