As the article discusses, Bitcoin (BTC) 
$96,815 is currently hovering around $95,800, struggling to maintain levels above $97,000. Concerns arise due to the negative impact of U.S. employment data on risk markets, compounded by potential sales of billions in BTC tied to the Silkroad case, adding to the tension among traders.
January Predictions for Bitcoin
While BTC has moved away from a low of $90,000, it has not yet breached the critical $97,000 level. Recent data on U.S. Producer Inflation did not meet expectations for a downturn, yet it showed an increase from the previous month. Additionally, strong employment figures released recently add complexity to the situation.
The Federal Reserve has two primary functions: job creation and maintaining price stability. After delaying interest rate cuts to combat inflation, the Fed is now facing the repercussions on the employment front. With robust job data and persistent inflation, no interest rate cuts are anticipated in upcoming meetings through September.
Bitcoin Price Forecast
Regarding Bitcoin’s performance in January, unless we witness a significant drop in the upcoming inflation report, the macroeconomic landscape may not provide support. The focus then shifts to January 20, when Trump is set to take office, potentially introducing favorable measures for cryptocurrencies.
If Trump swiftly announces policies easing pressure on cryptocurrencies, such as facilitating banking relationships with crypto firms, it could spur rapid price increases. Additionally, a new SEC chair without prolonged Senate approval may also support the anticipated rally this month.
Another crucial factor is the potential sale of Silkroad BTCs before Trump assumes office. If the Biden administration proceeds with these sales, anxieties will mount among traders. If no sales occur by Friday evening, a relief rally could follow over the weekend, despite some lingering sell-off possibilities.
BTC remains supported at $95,700, with a potential push above $97,000 if closing remains above this level. However, if it falls back to $92,180, it could lead to a deeper low at $87,500.
With 28 days since the all-time high, prices remain remarkably close to that peak. If a bull market persists, a return to six-figure prices is anticipated soon, requiring $102,500 to become a key support level for a new ATH.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
