The recent Aktuellen report 10x Research, a digital assets firm that specializes in research on digital assets, highlights the US Federal Reserve (Fed’s) position regarding interest rate reductions as the biggest obstacle that may dampen Bitcoin (BTC).
Bitcoin’s Trump-Fuelled Rally at Risk Before FOMC Meeting
Bitcoin’s price has increased by 47% since Donald Trump, a pro-crypto Republican, won the presidential election in November. It rose from $67,500 to $99,700 on January 6th.
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While additional gains are expected during the so-called “Trump rally” Markus Thielen of 10x Research says that as we approach the January 20th inauguration date, momentum may stall before the Federal Open Market Committee meeting.
Thielen Predicts A “positive start” BTC will have a positive start to the year, then a small dip until January 15, when Consumer Price Index (CPI), inflation data is released. Positive CPI data could rekindle optimism and fuel another rally ahead of Trump’s Inauguration. Thielen, on the other hand cautions against a bullish trend waning ahead of FOMC’s January 29 meeting.
The latest data released by CME Group’s FedWatch shows that the interest rate is likely to stay unchanged after the next FOMC meeting. The tool predicts that 90.9% of the time, interest rates will remain between 425 basis points and 450 BPS.
Bitcoins’ decline from approximately $15,000 to $82,900 after the FOMC meeting on December 18, shows the Fed’s influence. The Fed announced only two rate reductions for 2025, instead of the five that Thielen had predicted. “primary risk” BTC is currently on a bullish trend. Thielen has stated that:
It may be some time before the Federal Reserve recognizes and reacts to this trend.
Thielen cited institution participation as another key factor in influencing Bitcoin’s short-term pricing action. Metrics like stablecoin issuance rates and cryptocurrency exchange-traded funds (ETFs) are indicators of this interest.
Bitcoin Interest Continues to Rise Among Institutional Investors
Although US Bitcoin ETFs suffered significant outflows towards the end December, new inflows of funds have given rise to optimism regarding the rising interest by institutions. Data SoSoValue noted that the spot Bitcoin exchange-traded funds saw inflows of $908 millions on January 3.
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Several major BTC mining companies such as MARA The following are some examples of how to get started: Hut 8 Many companies are building up their BTC holdings. Recently, technology firms like the Canadian video-sharing platform Rumble have also boosted their BTC reserves. unveiled A $20 million BTC Treasury Strategy
Bitfinex has released a separate report on cryptocurrency. predicts Bitcoin prices could rise to $200,000. This is despite some minor pullbacks. BTC was trading at $101,555 when we went to press, an increase of 3.7% over the last 24 hour.
Charts are from CME FedWatch & Tradingview.com, and 10x research.
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Source: www.newsbtc.com
