What awaits the crypto market after the FOMC meeting?
January 06, 2025
The growth of Bitcoin, associated with expectations of Donald Trump’s inauguration, may slow down due to decisions by the Federal Reserve System. According to Markus Thielen from 10x Research, the FOMC meeting on January 29, where interest rates will be discussed, poses a key risk for the market. While Bitcoin showed strong growth at the beginning of the year, a pullback might occur before the publication of inflation data on January 15. However, a positive Consumer Price Index (CPI) could support the price again.
Expert predictions
According to data, the Federal Reserve System is 88.8% likely to maintain the rate within the range of 425–450 basis points. Nevertheless, any unexpected decision could cause significant market volatility.
Markus Thielen predicts that by the end of January, BTC will trade in the $97,000–$98,000 range. Meanwhile, John Glover from Ledn believes that in the short term, the price could drop to $89,000, followed by growth to $125,000 by the end of the first quarter.
Long-term forecasts for 2025 vary significantly. Glover suggests that digital gold could reach $160,000, while VanEck and Bitwise estimate possible growth in the range of $180,000 to $200,000.
Market influence factors
Federal Reserve decisions on inflation reduction rates and economic indicators continue to play a crucial role in the dynamics of the crypto market.
Market sentiment remains a major driver of BTC dynamics. On January 5, the Cryptocurrency Fear and Greed Index returned to the "Extreme Greed" zone with a score of 76 out of 100, indicating increased investor interest and a positive perception of the current market situation.