Bitcoin Tension Likely to Build Up by End of January: What\'s Driving the Uncertainty?

Is Bitcoin facing a potential slowdown by the end of January? Market sentiment suggests a build-up of tension as investors grapple with conflicting signals and anticipate key economic events. While Bitcoin rose to its highest level on record on Wednesday, eclipsing the previous high from January, as risk sentiment continues to improve, the long-term outlook remains clouded.

Several factors are contributing to this potential volatility. Speculation surrounding a Donald Trump-led Bitcoin rally in 2025 is rife, with many anticipating a surge in the days leading up to his inauguration on January 20th. However, analysts warn that this rally may face roadblocks due to CPI data and FOMC meetings. The initial enthusiasm could wane towards the end of January.

Specifically, concerns are mounting that the Bitcoin price crosses $97,300, with analysts anticipating a major breakout ahead of the January 29 Federal Open Market Committee (FOMC) meeting. The market is keenly awaiting the outcome of this meeting and its potential impact on monetary policy and, consequently, Bitcoin\'s price trajectory.

Furthermore, despite earlier projections of soaring to $100,000, Bitcoin is still looking for a major breakout in 2025. Selling pressure is coming from crypto investors who were expecting faster action on Bitcoin is ending 2025 on a downward skid, falling nearly 5% in December despite significant purchases. As investors turn the calendar, the uncertainty surrounding Bitcoin\'s performance in late January is palpable.

In conclusion, the anticipation of key economic data releases, the FOMC meeting, and potential profit-taking after any initial Trump-related rally are all converging to create a potentially volatile environment for Bitcoin by the end of January. Investors should proceed with caution and closely monitor market developments.