Cryptocurrency enthusiasts are closely watching Bitcoin's movements, anticipating a price increase amid Trump's upcoming inauguration and consumer inflation data.
Optimism Hinges on Trump’s Inauguration
Markus Thielen, founder of 10x Research, notes that favorable consumer inflation data could rekindle investor sentiment and drive Bitcoin to $97,000–$98,000. However, this growth might be tempered by the Fed's interest rate decision on January 29.
Institutional Investors Influence Bitcoin's Movement
Institutional investor activity remains a critical factor in Bitcoin's price determination. Stablecoin issuance and inflows into spot Bitcoin ETFs will provide insights into large players' sentiment.
Long-term Bitcoin Forecasts
Despite potential short-term fluctuations tied to Fed policies, Bitcoin's outlook for 2025 appears promising. Analysts tend to a resurgence of institutional investor activity, supporting the cryptocurrency's long-term growth.
While short-term risks related to Fed policy remain, Bitcoin's long-term prospects look promising, driven by the anticipated resurgence of institutional investors.
