- Bitcoin has climbed above $100,000 again.
- The crypto market declined over the festive period.
- Market analysts eye three important dates this month.
Bitcoin’s back.
After slumping below $92,000 during the holidays, the world’s leading cryptocurrency recovered almost 11%% over the past seven days to trade above $101,000 on Monday.
Analysts predict that the recovery is just a stepping stone towards Bitcoin hitting the $200,000 mark in 2025.
In January, several factors will drive the price of Bitcoin, analysts say.
Three key dates
Three dates will be key in what direction the price goes in January, analysts at crypto research platform 10x Research wrote on Monday.
On January 15, the Bureau of Labor will report the consumer price index, or CPI, which is a gauge of the health of the US economy. High inflation is usually seen as bullish for Bitcoin’s price as investors will, arguably, buy the cryptocurrency to hedge against inflation.
“A favourable inflation print could reignite optimism, fuelling a rally into the Trump inauguration on January 20,” the 10x Research report said. “However, this momentum may wane, with the market likely retreating somewhat ahead of the FOMC meeting on January 29.”
President-elect Donald Trump won his second term after coming out as a backer of the crypto industry. Market participants now expect him to live up to promises made on the campaign trail.
The Federal Reserve’s Federal Open Market Committee will meet on January 29 and decide whether or not to cut interest rates. Rate cuts are usually seen as bullish to riskier assets like cryptocurrencies.
However, the FOMC is unlikely to cut interest rates, according to CME’s FedWatch tool.
Bitcoin treasuries
Bitcoin held by public companies grew by 125% last year and corporations appear to have an even larger appetite for the top crypto asset.
The growing adoption of Bitcoin as a treasury asset is a major driver of the cryptocurrency’s recent recovery, André Dragosch, director and head of research at Bitwise Europe, said in a blog.
Dragosch also said more companies will hold Bitcoin on their balance sheet to replicate the “stellar stock performances” of firms such as Metaplanet, the best-performing stock globally last year.
MicroStrategy and Bitcoin miner Marathon Digital are the two companies with the largest Bitcoin holdings.
Both firms have added to their Bitcoin treasuries at the start of the year.
MicroStrategy founder Michael Saylor has also suggested another round of Bitcoin acquisition for the company following a $2 billion capital raise.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.