Bitcoin's Trump Rally: Would the Federal Reserve Halt the Momentum?

However, analysts suggest this momentum may slow by the end of the month as the Federal Reserve announces its first interest rate decision of the year.

Markus Thielen, founder of 10x Research, shared his expectations for Bitcoin’s price movements in a January 5 report.

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Thielen predicted a strong start for Bitcoin in early January. He also expects a slight pullback around January 15, when the Consumer Price Index (CPI) inflation data is released, followed by another rally closer to inauguration day.

Thielen explained:

A favorable inflation print could reignite optimism, fueling a rally into the Trump inauguration.

Despite this optimism, Thielen believes the market could cool down ahead of the Federal Open Market Committee (FOMC) meeting on January 29. He noted that traders may become cautious, as announcements from the Federal Reserve often affect market behavior.

The Federal Reserve’s actions are a key risk for Bitcoin’s performance in 2025, according to Thielen. While inflation may decline, he believes it could take time for the Federal Reserve to adjust its policies accordingly. He said:

We anticipate lower inflation this year, though it may take some time for the Federal Reserve to recognize and respond to this shift formally.

As anticipation for Bitcoin's potential rally builds up, Fred Thiel recently shared a straightforward tip for investing in Bitcoin. What is it? Read the full story.