Highlights:
- Inflation Concerns Eased: The recent easing of inflation fears allows Bitcoin to potentially reach record highs with Trump's inauguration approaching, according to 21Shares.
- Price Speculations: Two Prime suggests that ambiguous hints regarding a strategic Bitcoin reserve could lead to asymmetric price behavior.
- Market Movements: Wincent predicts 10% price fluctuations in major cryptocurrencies, including Bitcoin, as traders brace for the changes in administration.
Crypto traders are expressing renewed optimism, expecting Bitcoin (BTC) to break through previous highs as President-elect Donald Trump’s inauguration day on January 20 nears. Bitcoin has recently climbed 11% from its lows below $90,000, briefly eclipsing the $100,000 mark, with recent data showing significant market activity.
This surge follows a softer-than-anticipated core CPI report which alleviated fears surrounding the Federal Reserve's hawkish stance that had constrained prices. Traders are now focusing on potential pro-crypto announcements from Trump upon his assumption of office.
"The removal of inflation fears clears the way for Bitcoin to break through the strong $100,000 resistance level before Trump’s inauguration," said Matt Mena, a crypto research strategist at 21Shares. He mentioned that achieving this milestone would not only carry psychological weight but would also signal a technical breakout, allowing Bitcoin to exceed its all-time high of $108,000.
As Trump prepares to take office, his well-known support for pro-growth policies and asset price growth is expected to bolster positive outlooks for both Bitcoin and broader risk assets. The forecast aligns with growing traditional market momentum, particularly as the Nasdaq 100 index recently surged over 2%.
Additionally, with the dollar index rally stalling, market pressures on risk assets have lessened, nudging the S&P 500 closer to a pivotal level near 6,000.
"Bitcoin's trajectory could dramatically shift should Trump announce intentions to create a Strategic Bitcoin Reserve, as the demand outstrips supply in such scenarios," noted Nathan Cox from Two Prime.
Expectations of announcements related to regulating digital assets and establishing banking guidelines underscore a volatile month ahead, according to Paul Howard of Wincent, forecasting possible +/-10% swings in cryptocurrencies, including BTC, SOL, ETH, and XRP.
For ongoing updates regarding the evolving crypto landscape, stay tuned.
