The cryptocurrency market experienced enormous fluctuations this month. After first breaking the $100,000 barrier on December 5, it saw a thrilling major pullback from December 9 to 10. Since then, the market has slowly oscillated upwards, just when investors thought BTC was about to break $110,000, a hawkish statement from Fed Chair Powell struck the heated market hard, leading to a bloody correction in the altcoin market led by Ethereum. As of now, some altcoins have nearly halved in price from this month's peak.
Panic among crypto investors is spreading, with anxiety and unease flooding the community.
Countless investors are asking: Is the bull market really over? What will the future market look like? Although the market is unpredictable, what catalysts can we expect in January? Why is January's performance worth looking forward to?
1. Trump will be inaugurated as president on January 20
After successfully campaigning for president in early November, the market welcomed a month-long rally. Trump has shown a crypto-friendly stance, and many of his nominated department heads are also pro-crypto figures. The SEC chair, who has been heavily criticized, is also about to step down, which makes the market generally optimistic about the future of the crypto market.
The latest data shows that the new batch of lawmakers is significantly more supportive of crypto compared to the previous session.
The market is closely watching Trump's every move regarding the crypto market. If he can fulfill his campaign promises, the crypto market may welcome its own golden era.
2. FTX is about to begin repaying debts
On December 17, FTX and its affiliated debtors announced that the Chapter 11 restructuring plan approved by the court will officially take effect on January 3, 2025.
The first round of distributions will start within 60 days after the effective date.
3. BTC generally rises during the Lunar New Year
The Spring Festivals of 2021, 2022, and 2024 all fell in early February, while the Spring Festival in 2023 occurred at the end of January. The chart above clearly shows that BTC's rise during the month of the Lunar New Year has been over 10%, with a peak reaching an astonishing 43.55%.
The Spring Festival in 2025 falls on January 29, which is earlier than in previous years.
