Despite signs of market liquidity shortages during the holidays, it is a fact that Bitcoin is about to rise.
Bitcoin is currently down more than 10% from its peak of $108,300 recorded on December 17. Data shows that the trading price has been below $100,000 since December 19.
Although momentum is slow, Bitcoin could rise to $105,000 in January.
As investors seek to allocate capital across various asset classes, Bitcoin's market is expected to experience range-bound fluctuations. By the end of January, Bitcoin may fluctuate between $95,000 and $110,000.
Trump's inauguration on January 20 may become an important catalyst in the cryptocurrency space. Many investors expect the incoming government to issue more favorable regulations for cryptocurrencies and improve the U.S. economic policy.
However, Trump's inauguration may not lead to an immediate price surge:
The entire market is looking forward to clearer cryptocurrency policies during Trump's term; however, I do not believe the inauguration is a bullish event but rather a premise to open a path with minimal resistance for the U.S. crypto market.
Bitcoin may peak at $200,000 in 2025, further reinforced by the record growth of the U.S. Bitcoin spot ETF, with managed assets nearing $110 billion.
Recovery requires increased trading volume.
Despite the optimistic trajectory of Bitcoin, it is still affected by a lack of liquidity during the holidays. To recover to six figures, Bitcoin still needs to accumulate more trading volume.
Despite the strong momentum currently, there is still a lack of trading volume.
On January 3, Bitcoin's daily trading volume exceeded $66.7 million, a 91% drop from the $743 million trading volume when it first broke the $100,000 mark on December 5.
Due to expectations of improved financial policies from the U.S. government, investor risk appetite is continuously increasing, and the outlook for 2025 remains optimistic, predicting prices between $150,000 and $200,000.
Which altcoin tracks will explode in 2025?
First is the AI sector; most current AI projects are still meme concepts, and no standout projects have emerged. A project that breaks out will surely create a wealth effect after being a hot topic throughout the year.
Secondly, there’s the DEFI sector, which is essential infrastructure for the bull market. Especially now that Trump is in office, the current planning is very beneficial for the development of DEFI, particularly for projects that generate revenue, such as AAVE and UNI. The Trump family's continued purchases of DEFI assets serve as strong evidence of this.
Secondly, there’s the RWA sector, where institutions like BlackRock are accelerating their layouts. For traditional assets, this has provided a new clearing method that allows illiquid assets to be arbitraged or quickly liquidated. The influx of funds from ETFs has already shown the interest of outside capital in the crypto market. Once the trend of RWA explodes in the future, the capital involved will be unimaginable. Compliance and practicality will be the main themes of this bull market.
In the first half of the year, the market will welcome a new round of rises in the first quarter. BTC prices may breach the $150,000 mark during this phase, and if funding conditions are favorable, the bullish peak could reach $180,000 to $200,000.
ETH's conservative estimate is at $6,000, with a bullish peak between $8,000 and $10,000.
In the fourth quarter, be cautious of peak pullback risks and seize the right timing to exit.