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The volatility of Bitcoin has not yet said its last word. As the crypto flagship starts the year at full speed, traders are watching two crucial events: inflation and American monetary policy. Between bursts of optimism and risks of correction, the crypto market is playing heads or tails with the decisions of the Federal Reserve. What if this rally was just a flash in the pan before the FOMC meeting on January 29?
Trump and the Federal Reserve: The Arbiters of Bitcoin’s Fate
Explosion or correction? Bitcoin, true to its unpredictable temperament, could be yo-yoing this month. Markus Thielen, founder of 10x Research, anticipates a positive start driven by the upcoming inauguration of Donald Trump, scheduled for January 20.
However, optimism could wane before the FOMC meeting at the end of January, where the Fed might keep its rates between 4.25% and 4.50%, according to the FedWatch Tool.
The inflation figures on January 15 will also play the party pooper. If the CPI index is favorable, the BTC price could reach new heights, potentially hitting between $97,000 and $98,000. But beware of illusions: a misstep by the Fed could turn this rally into a bloodbath, as it did last December when BTC fell 15% in a few hours.
“Monetary policy remains the main brake on a real takeoff“, stresses Thielen.
Crypto Trading: Opportunities or Illusions?
Savvy traders know that in January, it’s better to play strategy than haste. Bitcoin, despite its promises, operates within a tactical range, leaving little room for improvisation.
According to data from 10x Research, the environment remains mixed, offering occasional gains but not without risks.
Key figures to keep in mind:
- Bitcoin still dominates 55% of the crypto market;
- An initial rise at the beginning of January could quickly reverse;
- Flows into spot ETFs and stablecoins remain major indicators to watch.
Meanwhile, altcoins are struggling to regain their strength, hindered by BTC’s unwavering dominance.
In short, 2025 starts like a game of chess where every move must be calculated. Opportunists will know how to make the most of it, but beware of those who rely on disproportionate hopes.
Moreover, the rise of Bitcoin does not make everyone happy. While some traders rejoice, others fall into very real tragedies. In the background of this euphoria, crimes such as kidnappings and extortions are multiplying, reminding us that even in the realm of digital, money attracts shadows.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
