Bitcoin (BTC) started a strong start by 2025 and recorded 13.5%in the first 30 days. The price movement is more advantageous in this sector, reflecting the complete processing time of the US government. However, the price of Bitcoin was limited to $ 105,000, questioning the reason for the obvious identity of merchants.
S & P 500 Future (left) vs. bitcoin/USD (right). Source: TradingView / COINTELEGRAPH
There is a continuous bitcoin bull, but the three elements prevents the new highs. Trump in the United States is increasing the opportunity to raise digital assets without banks and hedge funds affecting the balance.
After the January 29 Federal Open Market Committee (FOMC) meeting, the US Federal Reserve Banking Commissioner said, “We do not oppose innovation.”
On January 30, the Czech National Bank (CNB) Board of Directors approved the proposal to evaluate Bitcoin investment as part of the international preliminary management strategy. The announcement revealed its intention to allocate up to 5%of the reserves of € 140 billion to Bitcoin following an interview with CNB Governor Aleš Michl.
Bitcoin ETFS assets are being managed. Source: COINGLASS
Increasing the price of Bitcoin was announced on January 30 at a fund managed by the Norwegian Central Bank and released a small stock of $ 500 million. It is important to use a company listed in the United States as some of the funds are required to purchase Bitcoin using the SPOT Exchange Transaction Fund (ETF).
Global economic slowdown, AI bubble and slow institutional adoption
Despite the favorable news flow, Bitcoin’s price did not exceed the $ 106,000 barrier. Therefore, analyzing the cause of investors act more carefully is essential to understand the time of the new BTC’s time zone. Traders are concerned that the global economic slowdown will cause the market to “quality flight” movement in which the market pursues shelters with cash and short -term government bonds.
The gross domestic product in the US was slightly lower than the market expectations in the fourth quarter of 2024, an increase of 2.3%. Similarly, according to data released on January 30, the eurozone economy has not grown zero. But traders are concerned that short -term negative impacts can harm Bitcoin’s price.
Recently, the launch of DeepSeek AI by Chinese competitors surprised the industry, causing record losses in stocks. Traders first saw the relative vulnerability of this sector. Although there is no direct impact on the BTC, the hedge fund tends to reduce the exposure of the most assets, which reduces the dangerous appetite of investors, and the BTC surpassed most of the sectors.
relevant: El Salvador rushes to a new Bitcoin method to comply with IMF transactions.
The Trump administration has clearly dismantled the Operation Choke Point 2.0, but it does not mean that the bank begins to accept Bitcoin immediately. More clear accounting and risk calculation rules are required and perhaps approval of in -kind ETFs that allow integration with existing markets.
Bitcoin’s rise in Bitcoin is limited to more than $ 105,000 until these three conditions are met. However, the additional institutional adoption of countries, in particular, can even increase the price of BTC.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.