Mr. Lee shared:
"After Christmas, the market often tends to recover. Investment funds will begin to adjust their positions and seek opportunities in sectors benefiting from Donald Trump's presidency. The expected trading range for BTC this week is from $94,000 to $105,000."
1. The market is highly volatile at the end of the year
In December, the cryptocurrency market faced significant declines on December 9 and December 19. The leading cryptocurrency, BTC, lost considerable value during this time, failing to maintain the $100,000 mark.
However, optimistic signals have begun to emerge as the market prepares to enter the new year. Many analysts believe that the decrease in liquidity during the Christmas holiday is a key factor causing BTC's price to temporarily stagnate.
2. Expectations for recovery after the holiday
According to experts, as the holiday season ends, liquidity will increase due to the return of institutional investors. Ryan Lee, a leading analyst at Bitget Research, commented that BTC will have a minor correction after the holiday before recovering and reaching $105,000.
3. The impact of macroeconomic factors
Several factors are strongly impacting Bitcoin's price, including:
• The Fed's interest rate policy: Decisions about interest rates directly affect the cash flow into the cryptocurrency market.
• President Donald Trump taking office on January 20: The economic policies of the new administration may have positive impacts on the financial market in general.
4. Cash flow from Bitcoin ETF funds
Despite optimistic forecasts, data from Farside shows that net outflows from Bitcoin ETF funds in the U.S. exceeded $338 million as of December 24. This indicates caution among some investors.
5. Caution among investors
Famous cryptocurrency analyst Rekt Capital warns in a post on December 24 that the Bitcoin price correction may continue before a real recovery occurs.
Nevertheless, the long-term outlook for Bitcoin remains very positive, especially with target prices exceeding $100,000.
Conclusion
The Bitcoin market is in a highly volatile phase, but experts still believe in the recovery potential of this currency after the holiday. With supportive macroeconomic factors and the return of institutional money flow, the price target of $105,000 could become a reality soon.