Bitcoin (BTC) price shows no directional bias as of December 30 and consolidates around $93K after crashing 14% from its ATH. However, the start of a new year could end Bitcoin’s bearish outlook and kickstart a bullish outlook based on these top reasons.
Top Reasons Why January 2025 Will See Bitcoin Price Skyrocket
President-elect Donald Trump’s Inauguration on January 20.
Capital inflows as FTX will start paying claims from January 3.
MicroStrategy continuing its BTC buying spree.
How Will BTC Price React to Donald Trump’s Inauguration?
Many investors believe Bitcoin will crash during President-elect Donald Trump’s inauguration on January 20. This is because investors who opened trades before the elections would consider closing them, leading to a short-term correction. However, this is unlikely due to January being a historically strong month with positive returns. Furthermore, the FTX claims set to be paid out in January will serve as a capital influx and propel BTC and the broader crypto markets higher.
FTX’s Claims Payout in January 2025 May Propel BTC Higher
Sunil, an FTX creditor activist, recently quashed a fake report that FTX claims would pay out $16 billion by January 3. According to Sunil, the “distribution does not that start on January 3.” He adds that “the $16 billion” would not be distributed within 60 days.
Based on his approximation, $13 billion in cash will be distributed now, and the remaining $14 billion will be paid out in March 2025. He adds that 50% of FTX claims reserve worth $7 billion will not be distributed initially.
Regardless, this payout will be a huge capital inflow for crypto markets and could serve as the necessary tailwind to drive BTC’s price higher to a new ATH.
MicroStrategy’s Bitcoin Buying Spree
Michael Saylor, the CEO and co-founder of MicroStrategy, has been a huge proponent of Bitcoin. His company holds 444,262 BTC worth $41.41 billion, of which 5,262 BTCs were acquired on December 23.
Additionally, MicroStrategy announced its plan to dilute its Class A Common Stock and Preferred Stock. The proposal aims to convert 330 million Class A shares to 10.33 billion shares and 5 million preferred shares to 1.005 billion shares. Investors can assume Saylor’s plan to dilute shares is to add more BTC to their holdings.
To conclude, the three reasons mentioned above suggest that 2025 will be a good year for cryptocurrencies, especially BTC.
Bitcoin Technical Analysis: Expert Predictions
Let’s explore key Bitcoin price forecasts by some popular analysts and what they believe BTC will do next.
According to popular crypto analyst CryptoBirb, Bitcoin is in the optimism phase and will trigger a “vertical” rally as it anticipates an entry into the belief phase. Based on the MVRV (market value to realized value) valuations, Birb notes that “We’re stepping into 2025 with vertical post-election rallies (+977% avg gain)” and projects an all-time high of BTC beyond $250K.
BTC/USD 1-week chart
Quinten, another popular analyst, compares the ongoing Bitcoin bull run with the past three cycles and hints that there is more upside before BTC forms a top.
BTC Price After Halvings
On the other hand, veteran trader Peter Brandt notes that Bitcoin forms a head-and-shoulders setup with $78,000 as its next target.
This is a head and shoulders top pattern. It might complete and take price to $78,000; it might fail with a thrust hire: or, it might morph into something else. But as it stands right now, it is a head and shoulders top and must be chartist dealt with for what it is. pic.twitter.com/b9AUUO7ddL
— Peter Brandt (@PeterLBrandt) December 29, 2024
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