The US is set to hit its $36 trillion debt ceiling on January 21, prompting a potential temporary correction in Bitcoin to around $70,000 before a market recovery. Treasury Secretary Janet Yellen announced a debt issuance suspension period that will affect global liquidity, which could negatively impact Bitcoin. Analyst Raoul Pal forecasts Bitcoin could peak around $110,000 in January, followed by a decline to below $70,000 in February. However, some analysts believe the debt ceiling situation may not have a straightforward negative effect, as Bitcoin has previously acted as a hedge against monetary instability. Marcin Kazmierczak highlighted that traditional market volatility could spill over into the crypto market, affecting Bitcoin's stability based on investor behavior and economic responses. After March 14, increased global liquidity is expected, which could position Bitcoin's price trajectory favorably for 2025, potentially climbing to above $132,000 by year-end, according to Jamie Coutts, chief crypto analyst at Real Vision. Some projections suggest a Bitcoin price of $180,000 could also be feasible later in the year after potential retracements in the first quarter.

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