A Trump-led Bitcoin rally is expected before his Jan. 20 inauguration, but could lose momentum towards the end of January as the Federal Reserve prepares for an interest rate decision. Markus Thielen, founder of 10x Research, anticipates an initial positive movement in early January, potentially followed by a pullback ahead of the Consumer Price Index (CPI) inflation data on Jan. 15. A favorable CPI report might reignite optimism, facilitating a rally into the inauguration. However, concerns around the Federal Open Market Committee (FOMC) meeting on January 29 may lead to a market retreat. The CME Group's FedWatch tool indicates an 88.8% probability of the US federal target rate staying between 425 and 450 basis points after the FOMC meeting. Despite a recent 15% drop in Bitcoin to around $92,800 following the December FOMC meeting, Thielen predicts Bitcoin will be valued between $97,000 and $98,000 by month's end, while Ledn's John Glover projects a rise to $125,000 by the quarter's end. The Crypto Fear and Greed Index indicates extreme greed as Bitcoin trades at $98,850, showing strong market sentiment despite mixed short-term outlooks.

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