According to Markus Thielen, head of research at 10x Research, it appears that Bitcoin could experience a significant price surge before the US Federal Open Market Committee meeting scheduled for January 29th.
However, the recent surge could cause Bitcoin’s (BTC) price to either rise or fall from its present value of $96,794, according to his statement.
Bitcoin’s ‘narrowing triangle’ means it could go either way
According to Thielen’s analysis in a recent market report, Bitcoin’s trading pattern indicates a potential breakout could occur soon, possibly before the Federal Open Market Committee (FOMC) meeting on January 29.
As a researcher, I would advocate for adopting a strategy that aligns with the breakout, whether it’s an uptrend or downtrend, following the advice provided by Thielen.
Thielen stated that there’s been an increase in anticipation for a larger Consumer Price Index figure. If inflation ends up being lower than predicted, this unexpectedly low figure might spark a surge in Bitcoin prices.
2025’s first interest rate determination at the January FOMC meeting is an event that draws keen attention from cryptocurrency market observers. This heightened interest stems from the relatively aggressive stance taken by the Federal Reserve during their December meeting.
In simpler terms, Bitfinex stated in their January 13th market report that the Fed’s stance recently has been particularly aggressive or “hawkish.” On December 4th, Fed chair Jerome Powell hinted in a press statement about interest rate cuts that there might be fewer cuts in 2025 than initially anticipated. This suggestion is considered negative for riskier investments like Bitcoin and cryptocurrency.
Analyst ‘remains cautious’ of Bitcoin ahead of Trump’s inauguration
Additionally, Bitfinex referred to the CME FedWatch Tool, indicating that traders in the Fed Funds futures market predict approximately a 38.3% chance that the Federal Reserve will not lower interest rates during the first half of 2025.
Thielen expresses a note of caution regarding Bitcoin’s price as Donald Trump’s U.S. presidency begins on January 20, predicting that Bitcoin could potentially stabilize or slow down in its growth over the next two months.
“Due to weak market drivers, Bitcoin will likely remain range-bound until mid-March.”
In my recent analysis, I’ve noticed that Bitcoin seems to be mirroring its price action around the time of the last U.S. Presidential election and inauguration.
He pointed out on a Bitcoin price graph that prior to President Biden’s inauguration in January 2021, the cryptocurrency dropped down to around $30,000. However, following his inauguration, it surged back up to approximately $55,000.
“While history may not repeat itself, it often rhymes,” Davis said.
This piece is meant to provide a broad understanding and shouldn’t be construed as legal or financial guidance. The perspectives, ideas, and opinions shared are those of the writer and may not align with or reflect the standpoints of CryptoMoon.
Read More
- RLC PREDICTION. RLC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- CAKE PREDICTION. CAKE cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- TRAC PREDICTION. TRAC cryptocurrency
- POL PREDICTION. POL cryptocurrency
- OM PREDICTION. OM cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- SXP PREDICTION. SXP cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
2025-01-15 06:52