Bitcoin's January 2025 journey is shaping up to be a rollercoaster. Markus Thielen from 10x Research predicts a strong start, with a potential rally leading up to Trump's inauguration on January 20. However, this momentum might dip as the Federal Reserve's interest rate decision looms on January 29. The Fed's stance is seen as a key risk for Bitcoin's rally, with the market eyeing a target rate between 425 and 450 base points.

Bitcoin's price could see fluctuations, with predictions ranging from $89,000 to $98,000 by month's end. Despite short-term uncertainty, optimism remains high, with some experts forecasting a rise to $160,000 by late 2025. Meanwhile, the Crypto Fear and Greed Index has returned to "Extreme Greed," signaling strong market sentiment.