Bitcoin Crash ‘Will Not Delay’ After Jan FOMC Meeting: 10x Research
Bitcoin is preparing for a rally in late January ahead of the US Federal Open Market Committee meeting on January 29, said Marcus Thielen, head of 10x Research.
But that breakout could push the price of Bitcoin (BTC) higher or lower than its current $96,794, he said.
Bitcoin's “narrow triangle” can go either way.
“Bitcoin is trading in a narrow triangle, indicating a breakout – probably no later than the January 29 FOMC meeting,” Thielen said in a January 14 market report.
Marcus Thielen says the Bitcoin chart is due for a recent breakout. Source: 10x Research
“From a marketing perspective, the best approach is to follow the trend regardless of direction,” Thielen said.
Thielen said expectations for a higher consumer price index number have risen, which means that if inflation cools down more than expected, it could trigger a Bitcoin rally.
The January FOMC meeting marks the first interest rate decision for 2025. Given the hawkish tone given by the Federal Reserve in December, it's a date that crypto market participants will be watching closely.
“This is one of the most ambiguous positions from the Fed in recent months,” Bitfinex said in a Jan. 13 market report. On December 4th, Fed Chairman Jerome Powell hinted at a press conference that there may be a smaller-than-expected rate cut as early as 2025 – a sign of risk for things like Bitcoin and crypto.
Analyst ‘Remains Cautious' About Bitcoin Ahead of Trump Inauguration
Bitfinex also pointed to the CME FedWatch tool, which shows traders in the Fed funds futures market estimate a 38.3% chance that the Fed will not make any rate cuts in the first half of 2025.
As Donald Trump approaches the US presidential election on January 20, Thielen “remains cautious” suggesting that Bitcoin may begin to strengthen in the next two months.
“Due to weak market drivers, Bitcoin will remain range-bound until mid-March.”
Bitcoin price has increased by 1.97% in the last 24 hours. Source: CoinMarketCap
Meanwhile, crypto analyst Lark Davis said in a January 14 X post that “Bitcoin is repeating the same price action as the last presidential election and inauguration.”
Related: Is Bitcoin's Bull Run Over? Analyst metrics do not point to ‘market peak' yet.
In the year He highlighted on the price chart that before Biden's inauguration in 2021, Bitcoin had seen the $30,000 mark, and after the inauguration, it would rise to $55,000.
“While history can't repeat itself, poetry often does,” Davis said.
Magazine: Crypto Market ‘Not Playing Ball' Yet By 2025: Jason Pizzino, X Hall of Flame
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
