The US Federal Reserve's monetary policy and expected crypto regulations from the incoming Trump administration are pivotal factors for Bitcoin's future price. Notably, Bitcoin could see a boost of over $612 billion in new liquidity in the first quarter of 2025, effectively alleviating investor worries stemming from regulatory delays. Following recent unease causing Bitcoin to drop below $100,000, many remain optimistic due to anticipated increases in dollar liquidity post-inauguration. Arthur Hayes, co-founder of BitMEX, notes that while regulatory setbacks may occur, a robust liquidity environment could drive Bitcoin to a local peak in March 2025 before potential corrections due to unmet regulatory expectations from the new administration. Analysts project Bitcoin's trajectory could allow for a cycle top exceeding $150,000 by late 2025, anticipating significant global money supply increases. This current downturn has been linked to reduced institutional activity during the holidays, although a resurgence in investment at the start of the year may propel Bitcoin back over $100,000 before Trump's inauguration on January 20.

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