The FOMC Could Trigger A Major Movement For Bitcoin

The price of bitcoin seems ready to take off in an exceptional movement, and speculations are rampant. Will it soar or collapse? Analysts are preparing, and investors are holding their breath.

The January FOMC: an expected catalyst for bitcoin

The market is eagerly awaiting the meeting of the Federal Open Market Committee (FOMC) scheduled this month. According to Markus Thielen, the research director at 10x Research, this meeting should trigger a significant price breakout on bitcoin. The chart signals point to a “contracting triangle,” a sign that a net fluctuation is looming on the horizon.

This technical configuration reveals two possible scenarios. Bitcoin could leap above its current psychological barrier if inflation turns out to be lower than expected.

Investors are indeed anticipating a potential easing of the Federal Reserve’s monetary policy, a scenario favorable to risk assets like cryptocurrencies. But nothing is certain.

On the other hand, the Fed is currently maintaining a tone deemed “belligerent.” In its previous announcement, it hinted that there would be fewer rate cuts than expected in 2025.

If the meeting confirms this position, bitcoin may experience profit-taking and weaken. All eyes are hence fixed on the FOMC: it is the key factor that could dictate the short-term trend.

Between caution and opportunity: all eyes turned to Trump

As Donald Trump’s inauguration date approaches, some observers prefer caution. Past experiences show that political instability can dampen bitcoin’s momentum, even creating a consolidation zone. Thielen even estimates that crypto could stagnate until mid-March, awaiting a more stable economic climate.

Yet, other voices remind that bitcoin has already defied many predictions. Analyst Lark Davis draws a parallel between the current market and that of the last presidential election.

At that time, a drop towards the $30,000 mark preceded a spectacular rebound to $55,000 shortly after the inauguration.

This optimistic scenario attracts more than one investor, even if history does not always repeat itself exactly. However, crypto constantly proves it: it loves to surprise. A bullish shock remains conceivable if macroeconomic signals align in favor of the market. Between caution and fervor, one certainty remains: the coming weeks will be crucial for bitcoin. Meanwhile, Semler Scientific invests $23 million.