Bitcoin about to Rise? Donald Trump's Inauguration and CPI Report May Create New ATH

After a bloodbath in the final weeks of December due to the hawkish comments from the Fed, the cryptocurrency market is recovering in the first week of January. Although the market may not see a significant rally this month like last year with events like the CPI report, FOMC meeting on January 29, and Trump's inauguration on January 20 will determine the fate of Bitcoin this month. Markus Thielen of 10x Research predicts that Bitcoin could experience a price surge in early January, driven by optimism surrounding the upcoming inauguration of President-elect Donald Trump. This momentum could be stronger if inflation data, expected to be released on January 15th, aligns with market expectations. The Consumer Price Index (CPI) report is an important event, as positive inflation figures can drive up the price of Bitcoin. In addition, the return of institutional investors and stablecoin issuance may further support Bitcoin's performance. Bitcoin ETFs and inflows are also important indicators to watch. Currently, US Bitcoin ETFs have returned with inflows of $900 million. The possibility of retracement ahead Thielen warns that Bitcoin's price hike may face obstacles by the end of January. The Federal Open Market Committee (FOMC) meeting by the Federal Reserve on January 29 is expected to keep interest rates stable, which could dampen the upward momentum. This slight decline is predicted to be influenced by the market's impact on the Fed's decision. Bitcoin continues to dominate the cryptocurrency market with a 55% market share, making its performance crucial to broader market trends. Thielen predicts that Bitcoin will trade between $97,000 and $98,000 by the end of January, considering significant changes in macroeconomic conditions. Meanwhile, John Glover from Ledn predicts the price will drop to $89,000 before recovering to $125,000 at the end of Q1 and reaching $160,000 at the end of 2025 or early 2026. This figure is slightly lower than the forecast of $180,000–$200,000 by VanEck and Bitwise. Despite short-term caution, Bitcoin has surged to $98,850, demonstrating investors' renewed confidence in the king of cryptocurrencies. After the price hike, the Crypto Fear and Greed Index has shifted to "Extreme Greed" at 76/100, reflecting strong market optimism. What Awaits Ahead? The current Bitcoin price drop is considered a great opportunity to buy Bitcoin below $100,000 and is seen as a normal process. However, all eyes are currently focused on Trump's election promises if he can provide regulations on cryptocurrency as soon as possible, and most importantly, the strategic Bitcoin reserve fund plan of the United States. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)