Bitcoin analysts are predicting a potential recovery rally, despite the decline in market activity due to holiday-driven illiquidity. Bitcoin is currently trading over 10% below its all-time high of $108,300, achieved on December 17. Since December 19, the cryptocurrency has remained under the $100,000 mark, according to Cointelegraph Markets Pro data.
Bitfinex analysts are optimistic that Bitcoin could reach $105,000 in January, suggesting it will trade between $95,000 and $110,000. They anticipate range-bound markets as investors allocate capital across various assets. The impending inauguration of United States President-elect Donald Trump on January 20 may provide a catalyst for cryptocurrency prices, with expectations of more favorable regulatory and economic policies for crypto in the US. Nonetheless, Bitfinex analysts advise that, while Trump’s inauguration could clarify crypto policies, it is unlikely to immediately boost prices.
Market analysts are highlighting the need for increased trading volumes to propel Bitcoin above the six-figure threshold once again. Currently, daily trading volumes are significantly lower, being 91% less than the $743 million recorded on December 5, when Bitcoin first exceeded $100,000. For sustained growth, experts emphasize the importance of recovering from holiday-related market slowness.
Despite current conditions, optimism persists among analysts regarding Bitcoin’s long-term trajectory. Predictions for 2025 suggest prices could range between $160,000 and $200,000, as investor risk appetites grow amidst expectations of improved US financial policies.
