Bitcoin’s Short-Term Challenges Loom Despite Trump’s Support
While the cryptocurrency community anticipates a strong 2025 with Donald Trump returning to the Oval Office, new reports suggest that Trump-led rallies may face obstacles.
As 2025 begins, following the December FOMC meeting and the holiday season, the cryptocurrency trading environment is showing mixed trends.
Bitcoin rally risks losing momentum despite Trump’s support
according to 10x researchthe first quarter of 2025 may not see the same level of momentum shown in late January to March or late September to mid-December 2024.
The Consumer Price Index (CPI) data released on January 15 is a key event to watch. A pullback is expected ahead of the CPI data, and if the results are favorable, the market could rally again.
“A favorable inflation Print could reignite optimism and drive rallies ahead of Trump’s inauguration on January 20,” wrote 10x founder Mark Thielen.
However, the momentum generated by this rebound may be short-lived. Thielen added that the market could pull back ahead of the Jan. 29 FOMC meeting. he expected Bitcoin By the end of January it will be between $96,000 and $98,000.
Bitcoin hits new highs all time high in the fourth quarter of 2024, following the Federal Reserve’s 25 basis point interest rate cut. this Rate cut in September They are also highly bullish on the cryptocurrency market.
Bitcoin will still dominate in 2025
Another factor to consider when discussing BTC price trajectory in 2025 is Bitcoin Dominance. According to the 10x report, Bitcoin’s market share surged from 50% to 60% from January to mid-November 2024, putting tremendous pressure on altcoins.
As Bitcoin’s dominance rises, many altcoins struggle to gain traction, making it difficult for investors to see substantial returns outside of Bitcoin.
there was a brief period Bitcoin Within three weeks, dominance dropped to 53%, raising hopes for an altcoin season. However, this decline was short-lived; Bitcoin Dominance It quickly rebounded to nearly 58% and stabilized at around 55% by the end of 2024. Consolidation around the 55% level shows that Bitcoin still has a firm grip on the market.
For investors, this highlights the importance of closely monitoring Bitcoin’s dominance. At press time, Bitcoin dominance was around 57%, while the price was trading at $99,225.
10xResearch’s Bitcoin predictions are as follows Head of Research at CoinShares James Butterfill predicted last week that Bitcoin could reach a potential peak of $150,000 in 2025 and pull back to $80,000.
Similarly, Asset management estimates by bit Bitcoin could reach $200,000 by the end of this year.
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