Bitcoin’s price fell to $92,500 on Jan 7 after briefly surpassing $100,000 earlier that day, marking its first breach of the psychological milestone since Dec 19.
This price drop triggered liquidations of more than $631 million in leveraged long positions over the past 24 hours, as reported by CoinGlass. Market participants expect the Federal Reserve to keep rates unchanged at its Jan 29 meeting, with a 95.2% probability indicated by the CME Group’s FedWatch tool. However, the first anticipated rate cut has been pushed back to June 18 due to signs of economic resilience.
The Federal Reserve’s latest Federal Open Market Committee (FOMC) minutes revealed a shift in its monetary policy strategy, including a potential slowdown in rate cuts. This has added uncertainty to financial markets, with experts noting that such changes could significantly influence the cryptocurrency market.
Despite the short-term corrections, analysts remain optimistic about Bitcoin’s long-term prospects. Some predict a potential cycle top above $150,000 in late 2025, driven by an expected $20 trillion increase in the global money supply. This growth could direct as much as $2 trillion in investments toward Bitcoin, further bolstering its market value.
The interplay between macroeconomic factors and cryptocurrency market dynamics continues to be a critical focus for investors. As Bitcoin consolidates, experts are closely monitoring Federal Reserve actions and economic indicators to gauge the potential trajectory of the cryptocurrency market in 2025.
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