As the crypto community looks forward to a strong 2025 following Donald Trump’s return to the Oval Office, new reports show that Bitcoin’s price rally could face hurdles.
As 2025 begins, the crypto trading environment is showing mixed trends following the December FOMC meeting and the holiday season.
Bitcoin Rally Risks Losing Steam
According to 10x Research, the first quarter of 2025 may not witness the same level of momentum that late January to March 2024 or late September to mid-December of the same year showed.
The release of the Consumer Price Index (CPI) data on January 15 is a key event to watch. A pullback should be anticipated ahead of the CPI data release, and the market could rally again if there are favorable results.
A favorable inflation outcome could reignite optimism, fueling a rally leading up to Trump's inauguration on Jan. 20, 10x founder Mark Thielen wrote.
However, the momentum generated by such a rally could be short-lived. Thielen added that the market is likely to pull back ahead of the FOMC meeting on Jan. 29. He projected that Bitcoin will be in the $96,000 to $98,000 range by the end of January.
Bitcoin’s projected path in 2024. Source: 10xResearch
Bitcoin hit new all-time highs in Q4 2024 following the Fed’s 25 basis point interest rate cuts. The September rate cuts were also highly bullish for the crypto market.
BTC dominance persists into 2025
Another factor to consider when discussing the price trajectory in 2025 is Bitcoin’s Dominance Rate. According to the 10x report, from January 2024 to mid-November, the cryptocurrency’s market share rose from 50% to 60%, putting significant pressure on altcoins.
As Bitcoin’s dominance has increased, many altcoins have struggled to gain traction, making it difficult for investors to see substantial returns on these assets.
There was a brief period where Bitcoin dominance dipped to 53% over the course of three weeks, sparking hopes for an altseason. However, this dip was short-lived, and BTC dominance quickly bounced back to nearly 58%, stabilizing around 55% by the end of 2024. This consolidation around the 55% level signals that Bitcoin remains firmly in control of the market.
For investors, this highlights the importance of closely monitoring Bitcoin dominance. At press time, Bitcoin dominance was around 57% while the price was trading at $99,225.
Bitcoin Dominance Chart. Source: TradingView
10xResearch's Bitcoin projections come as CoinShares head of research James Butterfill predicted last week that Bitcoin could see potential peaks of $150,000 and corrections to $80,000 by 2025.
Similarly, Bitwise asset management projected that the cryptocurrency could reach $200,000 by the end of the year.
The article Bitcoin will face challenges in 2025 despite Donald Trump's pro-crypto stance appeared first on BeInCrypto Brasil.
