Bitcoin Price Surge Incoming? Donald Trump’s Inauguration and CPI Report Could Ignite New ATH
After experiencing a massive washout in the last few weeks of December due to hawkish comments from the Federal Reserve, the cryptocurrency market began to recover in the first week of January. Although the market may not see a sharp rebound this month like last year due to negative events such as the CPI report. The FOMC meeting on January 29 and Trump’s inauguration on January 20 will determine the fate of Bitcoin this month.
Markus Thielen, 10x Research predict Bitcoin may rebound in early January, driven by optimism about President-elect Donald Trump’s upcoming inauguration. This momentum could gain momentum if inflation data due to be released on January 15 is in line with market expectations.
The Consumer Price Index (CPI) report is a key event as positive inflation data could push Bitcoin prices higher. Additionally, the return of institutional investors and increased stablecoin minting may provide further support for Bitcoin’s performance. Spot Bitcoin ETFs and capital inflows are also important indicators to monitor. Currently, the U.S. Bitcoin ETF has returned to the market, with inflows reaching US$900 million.
Possible correction in the future
Thielen warned that Bitcoin’s rally could face resistance later in January. The Federal Reserve’s Federal Open Market Committee (FOMC) meeting on January 29 is expected to keep interest rates steady, which may dampen the momentum of the stock market. A minor pullback is expected as market factors influence the Fed’s decision.
Bitcoin continues to dominate the crypto market with a 55% market share, making its performance critical to broader market trends. Taking into account the significant changes in macroeconomic conditions, Thielen expects Bitcoin to trade between $97,000 and $98,000 by the end of January.
However, John Glover from Ledn predicts that the price will drop to $89,000 before rebounding to $125,000 by the end of the first quarter and reaching $160,000 by the end of 2025 or early 2026. That’s slightly lower than VanEck and Bitwise’s $180,000-$200,000 forecast. Despite caution in the short term, Bitcoin jumped to $98,850, showing investor confidence in the king of cryptocurrencies. Along with the gains, the Cryptocurrency Fear and Greed Index shifted to “Extreme Greed” at 76/100, reflecting strong optimism in the market.
What’s ahead?
The current decline in the price of Bitcoin is seen as an excellent opportunity to buy Bitcoin under $100,000 and is considered a normal process. However, all eyes are now on Trump’s election promises if he can introduce cryptocurrency regulation sooner rather than later, and most importantly his plan to establish a strategic US Bitcoin reserve.
