- While Bitcoin increased 5% in one week, 10X Research predicts a positive start for 2025, followed by a drop before the CPI data is released on January 15, with a potential for renewed momentum leading up to Trump’s inauguration.
- Swissblock analyst highlight a disconnect in economic indicators and financial markets. This suggests investors remain sceptical about warnings because of previous false alarms such as the 2020 scenario.
- Bitcoin sentiment remained measured through 2024, with only brief euphoric moments. This indicates that the market has the potential to grow sustainably above US$100K even without a peak of euphoria.
Bitcoin has gained 5% in a week, but has been unable to break through US$100,000. It is hovering just above this key level. Related: Grayscale Research unveils Top 20 Crypto Picks For Q1 2025, Highlighting New Altcoins And AI Innovations.
According to a recent 10X Research note, analysts believe that BTC will soon rebound. They don’t anticipate a similar rally to that of early 2024 after the US Spot exchange traded funds (ETFs) were approved by the US Securities and Exchange Commission.
Now is not the time to be as bullish as we were from late January to early March 2024, or from late September to mid December. We expect a positive start for the year, followed a slight pullback before the CPI data is released on January 15.
10X Research
According to the analysts, favourable inflation data may lead to a rekindling bull run leading up to Donald Trump’s inauguration. However, the FOMC meeting will likely dampen this rally a bit.
Swissblock analysts note that many economic indicators are pointing to a looming recession as 2025 begins. However, investors remain sceptical, viewing this as a “boy who cried wolf” scenario after previous false alarms like the massive quantitative easing during the anticipated 2020 recession.
Don’t forget that the economy is uncorrelated with the financial markets. The economy may send out warnings, but indices, stocks, and risk assets continue to climb, ignoring the signals.
Swissblock
Despite economic warnings, financial markets continue to rise, with the sentiment that “For now, Ride the Lightning,” even as we approach what may be the “blow-off top” phase of the market cycle, they wrote.
We must ride this wave and slowly seek an exit when the explosive move has ended.
Swissblock
The analysts further note that Bitcoin sentiment has remained surprisingly measured throughout 2024, with only brief periods of euphoria during Q1’s initial rally and Q4’s “Trump Pump”, suggesting the market hasn’t yet reached its peak euphoric phase.
Related: Australian Crypto Platform Lists Top AI Coins for 2025 in Trends Report
While a more explosive phase with parabolic price action and altcoin surges may still emerge, current sentiment levels appear conducive to an ongoing bull run in the near term.
In short term, however sentiment appears favorable for a sustained bull run that could drive prices above $100K without losing composure.
Swissblock