- Digital Wealth Intelligence
- Posts
- It's So Over... We're So Back!
It's So Over... We're So Back!
A Rollercoaster Ride: The State of the Market in early January 2025
TL;DR
Bitcoin wicks under $90k
Macro shifts, less FED rate cuts and MicroStrategy blackout
Trump signals crypto bullishness from day one
Is the cycle over?
Bitcoin Pullback: What’s Happening?
The cryptocurrency market has started 2025 with a significant correction. Bitcoin, which hit an all-time high of $106k in December 2024, is now trading near $94k (as of January 13). This decline has raised questions among investors: is the bull run over, or is this just a temporary pause?
Are you currently buying the dip on quality AI Agent projects?
• #VIRTUAL down 55%
• #AI16z down 60%
• $ARC down 57%
• #ZEREBRO down 71%
• #AIXBT down 40%
• #SWARMS down 68%
• #HYPER down 74%What else are you looking at?
If you are interested in my view on the market… x.com/i/web/status/1…
— Crypto Stream (@CryptoStreamHub)
1:25 PM • Jan 13, 2025
Why Are Bitcoin and Other Digital Assets Dropping?
The recent decline in Bitcoin and other digital assets can be attributed to a mix of factors that have already been priced into the market
Slower-than-expected FED rate cuts: The market had hoped for the Federal Reserve to make more drastic changes, but the slower pace of rate cuts has made investors less confident, meaning less liquidity.
Saylor is buying less Bitcoin: MicroStrategy has also slowed its purchases (possibly in its blackout period), which has reduced demand and led to a recent drop in the value of Bitcoin.
The Real Bull Run hasn't even begun.
— Murad 💹🧲 (@MustStopMurad)
8:29 PM • Jan 12, 2025
When and How Could the Market Recover?
Market recovery could come around Trump’s inauguration day, His administration has shown strong support for crypto, and this could boost institutional interest and restore market confidence in the short term.
According to the Washington Post Trump is ready to issue crypto related executive orders on day one:
*TRUMP TO ISSUE EXECUTIVE ORDERS RELATED TO CRYPTO ON DAY ONE
@DavidSacks ready to roll. 🚀
— Geiger Capital (@Geiger_Capital)
8:15 PM • Jan 13, 2025
One thing we can be sure of is if Trump is hosting a “Crypto Ball“ on his inauguration to celebrate with industry leaders “the first crypto president”, we shouldn’t be too bearish if at all a this stage:
Donald Trump’s inauguration will include a “Crypto Ball,” with technology industry leaders celebrating him as "the first crypto president”.
— Documenting ₿itcoin 📄 (@DocumentingBTC)
10:41 PM • Jan 13, 2025
Moreover, companies like MicroStrategy will continue accumulating Bitcoin, sustaining long-term demand. That increased institutional participation through ETFs and corporate strategies could be the catalyser for the bull run continuation. However, recovery may not be immediate across all Digital Assets sectors and will depend on factors like macroeconomic stability, regulatory clarity and other factors. We could be seeing diverse pockets of bullishenss action while other sectors lag while their catalizers get in place to send them off.
Today on the afternoon BTC wicked under 90k and bounced back now sitting above 92K… So, the question is, bottom Monday, turn around Tuesday?:
Going to say this again and you may want to bookmark this and then study past events.
Equities (not crypto, but correlation is now high) often bottom on Mondays around the US cash equities open (09:30 EST).
This pattern emerges following a big down week with a panicky close.… x.com/i/web/status/1…
— Alex Krüger (@krugermacro)
11:03 PM • Jan 13, 2025
We’re confident this marked the bottom, and we’re ready for a bullish continuation.
I hope it will be a Golden Age.
I know it will be a Bitcoin Age.— Balaji (@balajis)
5:17 PM • Jan 13, 2025
-DWI
Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.