Despite indications of holiday-driven market illiquidity, bitcoin analysts are predicting an imminent recovery surge, which contributed to December’s price fall. After reaching a new all-time high of $108,300 on December 17, Bitcoin is trading at a 10% loss. As of December 19th, the price of the first cryptocurrency was less than $100,000.
Bitcoin Could Reach $105K in January
Despite the lacklustre momentum, Bitfinex analysts predict that Bitcoin might reach $105,000 in January. As investors seek to diversify their holdings, we anticipate range-bound markets for Bitcoin. Bitfinex researchers say Bitcoin may be worth anywhere from $95,000 to $110,000 by the end of January.
The inauguration of Donald Trump as the 45th president of the United States on January 20 may serve as a major trigger for the price of cryptocurrencies. In the US, people hope the new administration will implement better economic policies and laws that are more crypto-friendly.
Bitcoin Could Hit $200K by 2025
We expect the new presidency to clarify crypto policies but do not see the inauguration as a significant price appreciation event. Instead, we see it as the precursor to forging a less obstructed pathway for crypto in the US,” said a Bitfinex analyst, who added that the inauguration might not immediately lead to a crypto rally.
Based on the record-breaking expansion of US spot Bitcoin exchange-traded funds (ETFs), approaching $110 billion in assets under management, analysts have called for a $200,000 Bitcoin price peak in 2025. Recovery necessitates a rise in trading activity. No matter how positive the holiday illiquidity, it still limits Bitcoin’s price movement.
Bitcoin’s Recovery Hinges on Trading Volume
Bitcoin needs to continue to amass greater trading volume in order to stage a recovery rally above the six-figure level. We don’t have enough trade volume for a powerful impulse. So, we’re sitting tight until the market gets over the holidays, Adler said in a post on X on January 4th.On January 3, Bitcoin’s daily trading volume was around $66.7 million.
A decrease of 91% from its volume of $743 million on December 5, when it initially surpassed the $100,000 milestone. As a result of investors’ increasing willingness to take risks in anticipation of better US financial policy, economists continue to be positive about Bitcoin’s 2025 trajectory, predicting prices between $160,000 and $200,000.
Summary
Bitcoin analysts predict a recovery surge despite holiday-driven illiquidity, potentially increasing to $105,000 in January. Although trading volume is low, analysts are optimistic about Bitcoin’s long-term future, forecasting prices between $160,000 and $200,000 by 2025. President Trump’s inauguration is seen as a catalyst for more crypto-friendly policies but not an immediate price trigger. Bitcoin’s growth is tied to increased trading volume and the success of U.S. Bitcoin ETFs, which have grown to nearly $110 billion.
FAQs
How has Bitcoin's trading volume affected its price movement?
Bitcoin's trading volume has significantly decreased, limiting price movements and preventing a powerful rally.
What role does Donald Trump's inauguration play in Bitcoin's price?
The inauguration may trigger more crypto-friendly policies but is not expected to immediately boost Bitcoin prices.
What is the 2025 Bitcoin price forecast?
Analysts forecast Bitcoin prices could reach $160,000 to $200,000 by 2025, driven by a rise in trading activity.
How do Bitcoin ETFs influence its price?
Bitcoin ETFs, with nearly $110 billion in assets, are expected to help Bitcoin's growth by increasing institutional investment.
