January 2025 could be a pivotal time for Bitcoin's market, especially with key events like the inflation report and Donald Trump's inauguration.
Trump's Inauguration and Its Potential Impact
Markus Thielen, head of research at 10x Research, predicts Bitcoin might rally in early January. His optimism is based on the anticipation surrounding Trump's inauguration and the inflation data release on January 15, expected to boost Bitcoin prices. The return of institutional investors and increased minting of stablecoins add to the positive market sentiment.
Challenges Facing Bitcoin Later in January
While early January looks promising, Thielen cautions about challenges for Bitcoin later in the month. The Federal Reserve meeting on January 29 is expected to leave interest rates unchanged, which might slow down Bitcoin's momentum, leading to a potential market correction.
Diverse Predictions for Bitcoin's Future
Thielen predicts Bitcoin trading between $97,000 and $98,000 by the end of January. However, John Glover from Ledn offers a more volatile outlook, expecting Bitcoin to drop to $89,000 before bouncing back to $125,000 by the end of the first quarter. Despite differing forecasts, Bitcoin's recent surge to $98,850 signals growing investor confidence.
Key events in January 2025 will be crucial in shaping Bitcoin's market trajectory. All eyes are on Trump's plans upon taking office and the potential creation of a U.S. Bitcoin Reserve.
