Bitcoin price crosses $97,300, with analysts anticipating a major breakout ahead of the January 29 Federal Open Market Committee (FOMC) meeting.
In the last 24 hours, Bitcoin price BTC $94 703 24h volatility: 0.3% Market cap: $1.88 T Vol. 24h: $23.26 B has staged a strong recovery jumping 2.45% and moving past $97,300 levels as of press time. As per 10x Research head of research Markus Thielen, the BTC price action is shaping up for a major breakout ahead of the Federal Open Market Committee (FOMC) meeting scheduled for January 29.
In his January 14 markets report, Thielen wrote:
“Bitcoin trades within a narrowing triangle, signaling a breakout is imminent — likely no later than the January 29 FOMC meeting”.
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Source: 10x Research
Thielen added that for traders, the best approach will be to follow the breakout regardless of which direction it happens. One of the major catalysts for a Bitcoin price rally would be the Consumer Price Index (CPI) data release today.
There have been growing expectations of a higher CPI, which means that if inflation comes cooler than the expected value, it could trigger a Bitcoin price rally ahead. At the January FOMC, the US Federal Reserve will make the first interest rate decision for this year 2025.
Considering the hawkish tone of Fed’s Jerome Powell last month, investors will be closely watching any further commentary. Furthermore, the strong jobs data and robust US economy have already delayed the first Fed rate cuts for 2025, to June this year.
Bitfinex highlighted data from the CME FedWatch Tool, which indicates that traders in the Fed Funds futures market see a 38.3% likelihood that the Federal Reserve will refrain from making any rate cuts during the first half of 2025.
Bitcoin Price Volatility and Trump Inauguration
Ahead of Donald Trump‘s inauguration next week on January 20, crypto market analysts are maintaining a cautious stand as Bitcoin price faces rejections at $100K levels. In his research report, Thielen stated that Bitcoin might consolidate for some more time and nearly for the next two months. He wrote:
“Due to weak market drivers, Bitcoin will likely remain range-bound until mid-March.”
Crypto analyst Lark Davis noted in a January 14 post on X that “Bitcoin is displaying price movements similar to those seen during the last presidential election and inauguration”.
Davis shared a price chart showing that ahead of President Biden’s 2021 inauguration, Bitcoin dipped to around $30,000 before rallying to $55,000 shortly after the event. “History may not repeat itself, but it often rhymes,” Davis added.
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