Bitcoin’s price is set for a potential breakout by the end of January, coinciding with the upcoming United States Federal Open Market Committee (FOMC) meeting on January 29, according to 10x Research’s Markus Thielen. Bitcoin, currently trading at $96,794, could either rise or fall, as it trades within a narrowing triangle, indicating an imminent market movement. Thielen advises traders to follow the direction of the breakout, irrespective of whether it’s up or down.
Market expectations are growing for a higher Consumer Price Index, suggesting that should inflation rates be lower than anticipated, Bitcoin might experience a rally. The January FOMC meeting will provide the first interest rate decision of 2025, and crypto investors are particularly attentive following a hawkish stance from the Federal Reserve in December. At that time, Fed Chair Jerome Powell suggested fewer rate cuts in 2025, a bearish sign for Bitcoin and similar assets.
As Donald Trump’s presidential inauguration approaches on January 20, Thielen also remains cautious, predicting Bitcoin might stay within its current range until mid-March due to weak market catalysts. Bitcoin’s price has risen 1.97% in the past 24 hours. Meanwhile, crypto analyst Lark Davis has noted parallels between current Bitcoin price movements and those observed during the last presidential transition, citing a similar dip and rebound pattern from the 2021 inauguration.