The cryptocurrency community is expecting a strong 2025 following Donald Trump’s return to the Oval Office, but a Trump-led rally could face obstacles, according to a new report.
As 2025 begins, the cryptocurrency trading environment is showing mixed trends following the December FOMC meeting and the festive holiday season.
Bitcoin Rally Risks Losing Momentum Despite Trump’s Endorsement
According to 10x Research, the first quarter of 2025 may not witness the same level of momentum seen in late January to March or late September to mid-December 2024.
The release of Consumer Price Index (CPI) data on January 15th is a key event to watch. A downside is expected following the release of CPI data, and a favorable outcome could cause the market to bounce back.
“Friendly inflation could reignite optimism, fueling a rally leading up to Trump’s inauguration on January 20,” 10x founder Mark Thielen wrote.
However, the momentum created by these rallies may be short-lived. Thielen added that a market pullback is likely ahead of the FOMC meeting on January 29. He expected Bitcoin to reach the $96,000-$98,000 range by the end of January.
Bitcoin hit a new all-time high in the fourth quarter of 2024 following the Federal Reserve’s 25 basis point interest rate cut. September’s interest rate cut was also very optimistic for the cryptocurrency market.
Bitcoin dominance will continue in 2025
Another factor to consider when discussing the BTC price trajectory in 2025 is Bitcoin’s dominance. According to the 10x report, between January and mid-November 2024, Bitcoin’s market share surged from 50% to 60%, putting significant pressure on altcoins.
As Bitcoin’s dominance has grown, many altcoins have struggled to gain traction, making it difficult for investors to see significant returns outside of Bitcoin.
There was a brief period when Bitcoin dominance fell by 53% over three weeks, sparking hopes for an altcoin season. However, this decline was temporary and Bitcoin dominance quickly rebounded to nearly 58%, settling at around 55% as of late 2024. This consolidation at the 55% level indicates that Bitcoin still has a firm grip on the market.
For investors, this highlights the importance of closely monitoring Bitcoin’s dominance. At press time, Bitcoin dominance was around 57% and it was trading at $99,225.
10xResearch’s Bitcoin outlook comes as CoinShares head of research James Butterfill last week predicted that Bitcoin could see a potential peak of $150,000 in 2025 and a correction to $80,000.
Likewise, Bitwise Asset Management predicted that Bitcoin could reach $200,000 by the end of the year.
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