Bitcoin is experiencing a rebound after correcting from its end-of-year tax-loss harvesting drop. As of January 2, 2025, BTC is trading around $97,000, a gain of over 3.4% in the last 24 hours. Following its decline below $100,000 on December 19, market analysts attribute the downturn to investors liquidating assets for tax optimization purposes. Isaac Joshua, CEO of token launch platform Gems, noted that liquidity is expected to flow back into the market as the new fiscal year begins, with increased demand anticipated. Additionally, Ryan Lee from Bitget believes BlackRock's Bitcoin ETF is set to enhance Bitcoin's legitimacy and facilitate its adoption by institutional investors. Both analysts forecast significant price movements for Bitcoin in January 2025, estimating a range between $83,000 to potentially reaching highs of $120,000, with some long-term predictions suggesting Bitcoin may hit $200,000 within the year. Key factors influencing these predictions include regulatory developments and broader market conditions.

Source 🔗