Bitcoin could see over $612 billion in new liquidity in the first quarter of 2025, which may alleviate concerns over delays in U.S. crypto regulations. On January 8, Bitcoin dropped nearly 6% to below $100,000, a critical psychological level. With President-elect Donald Trump’s inauguration on January 20 viewed positively for cryptocurrency, the expectation is that new liquidity may offset disappointment from any regulatory delays. Arthur Hayes, co-founder of BitMEX, suggested that increased money printing post-inauguration might lead to a peak for Bitcoin in March before a potential correction due to legislative inaction. Analysts speculate that, despite possible regulatory letdowns, Bitcoin could reach significant highs above $150,000 later in 2025, buoyed by a projected $20 trillion increase in the global money supply. Institutional investors are anticipated to re-enter the market, possibly pushing Bitcoin back above $100,000 before the inauguration, although sustaining these levels will depend on the implementation of crypto regulations and the Federal Reserve's policies throughout 2025.

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