News

News on January 15th, the latest weekly report from the on-chain analysis platform CryptoQuant predicts that by 2025 there may be an additional $520 billion flowing into the Bitcoin market, pushing Bitcoin prices to between $145,000 and $249,000. The report points out that favorable regulations, monetary policies and cyclical conditions will continue to drive capital inflow. Samson Mow, CEO of JAN3 company is more optimistic predicting that by 2025 Bitcoin's price could break through $1 million with daily fluctuations reaching up to $100 thousand. Filbfilb, co-founder of DecenTrader stated that currently Bitcoin behaves like a "beach ball underwater" suppressed by traditional markets. Concerns about Federal Reserve policy may overly influence crypto market performance.

PANews reported on January 15 that Singaporean cryptocurrency investment firm QCP Capital stated today that it is less than a week until the inauguration of the 47th President of the United States, Donald Trump. Similar to 2017, Trump has already found ways to shake up global markets even before his official inauguration on January 20. Concerns about inflation continue to plague the US market. The US job market remains strong, with last week's non-farm payroll (NFP) unexpectedly increasing (+256k, expected +165k). Although the Consumer Price Index (CPI) seems to be easing above its target of 2%, and Producer Price Index (PPI) has cooled down somewhat, market participants still expect December's CPI will be higher than previous values. Trump has been heavily promoting plans for tariffs on trade partners which further exacerbates concerns about inflation. Contrary to initial expectations of comprehensive tariffs, it now appears that the new government will gradually impose tariffs on certain imported goods. Shadowed by fears of inflation, bond yields have begun climbing again. The market currently expects only two rate cuts in 2025 and 2026 (while Fed’s latest dot plot had predicted four), and both ten-year and thirty-year U.S Treasury bond yields are nearing levels around five percent. As treasury yields rise, stock markets also face panic; S&P500 index once fell below support level at 5800 points while Bitcoin briefly dropped below $90K. Given recent developments, current macroeconomic environment does not seem favorable for risk assets. However one positive factor is that Trump's actual policies often differ greatly from his public statements; worries over inflation may not be as severe as anticipated by markets . For cryptocurrencies there are crypto-friendly personnel within Trump administration; rumors suggest Trump will issue broad executive orders friendly towards cryptocurrencies providing short-term bullish support for their prices . Market volatility is expected around time of Trump’s inauguration as markets need to digest and adapt to Trump's new term. We remain cautious about Bitcoin’s $90K price level as it has been tested multiple times; stock market also appears fragile, coupled with rising global bond yields this could lead to increased market chaos and volatility.