Bitcoin price reaches $100,000, igniting euphoria, but traders remain wary. Investigate why this is the case. What’s ahead for Bitcoin in January 2025?
The price of Bitcoin (BTC) reached $100,000 on Monday, reigniting the crypto market after 11 days of sluggish movement. However, traders are not as optimistic, displaying signals of caution.
Bitcoin price analysis
On Monday, the Bitcoin price rose by 3.91%, from $98,340 to $102,185. This upswing pushed altcoins and the whole crypto market higher. Despite the optimistic event of breaking the $100,000 psychological threshold, some traders and investors remain cautious and anticipate a reversal or market downturn.
As illustrated in the Bitcoin chart below, the current surge has brought BTC to the 161.8% Fibonacci retracement level of $102,306. This typical location of reversal lends validity to what traders have already said.
Let’s have a look at some expert predictions for the Bitcoin price and cryptocurrency markets.
Bitcoin’s sudden OI uptick threatens recent price rally
According to Adam of TradingRiot, Bitcoin’s latest climb to $100,000 was followed by a significant open interest spike.
From a relative change point of view, when OI surges very quickly in a short period of time, buyers (or sellers) often get shaken off before any continuation is higher.
Obviously, in trends, people just puke into bids, so the price doesn’t go much lower.
My biggest reason for… https://t.co/csAuMA2p43 pic.twitter.com/RjLLN7DRct
— adam (@abetrade) January 6, 2025
Will Bitcoin rise as US dollar tops? This trader remains cautious
BluntzCapital, a renowned cryptocurrency KOL with 306K followers, stated that the US dollar index (DXY) “looks topped” following a three-month surge. The expert now expects DXY to go below 99. As previously said, risky assets such as Bitcoin will rally if the DXY falls. BluntzCapital believes this dip will benefit risk assets, but because Bitcoin and US stocks soared or held up well throughout the DXY’s three-month surge, the analyst is skeptical.
$DXY looks topped now, hit 108 as i expected, wicked a major 0.618 level and looks like a long slow abc up after an impulsive move to the downside.
risk assets held up extremely well while dxy pumped which was counter intuitive.
i think we start heading back below 99 in 2025.… https://t.co/shQ7zYX3wl pic.twitter.com/D0wldkFTjG
— Bluntz (@Bluntz_Capital) January 5, 2025
Bitcoin’s fractal suggests price may dip before bull rally
ImmortalCrypto is likewise apprehensive about the latest Bitcoin price surge because to the “start of the year” fractal. In his X article, the analyst describes how the price increased significantly at the start of 2025, followed by a series of December lows. Only after this move did Bitcoin begin a tremendous rally.
Based on this fractal, Bitcoin is unlikely to surpass the December 2024 lows, assuming history repeats itself. This prognosis offered by ImmortalCrypto is consistent with CoinGape’s Bitcoin price prediction, which states that a BTC rally will begin after sweeping the previous month’s low. This pattern has repeated practically every month since May 2024.
Crypto markets to suffer liquidation if BTC Reverses uptrend
If Bitcoin corrects as many traders predict, it may result in a liquidation scenario. Ai16z (AI16Z), Worldcoin (WLD), Render (RENDR), and other altcoins that have risen in response to BTC’s recent surge risk losing their recent gains.
Depending on the size and volatility of Bitcoin’s price drop, a large liquidation event may occur. According to CoinGlass statistics, Bitcoin’s Monday rise wiped off $130 million in short bets. The opposite might happen if Bitcoin fails and reverses its near-4% gain.
In conclusion, while Bitcoin’s price increase to $100,000 has created euphoria, traders remain cautious. Some of the reasons why these investors are still reluctant include the recent open interest rise, the anticipated drop in the US dollar index, and the “start of the year” fractal.
As the market navigates these difficulties, it is critical to monitor Bitcoin’s price movement and its possible influence on the larger crypto market.
Canadian Prime Minister Justin Trudeau to resign: What it means for crypto
Two pro-crypto candidates may emerge as Trudeau’s successors, with backing from the crypto community.
Canadian Prime Minister Justin Trudeau announced his resignation on Monday. He will stand down from the position he has held since 2015 owing to “internal battles” impeding his leadership.
“I intend to resign as party leader and as prime minister after the party selects a new leader,” Trudeau said during a press conference. “I cannot be the one to carry the liberal standard into the next election.”
I will always fight for this country, and do what I believe is in the best interest of Canadians. pic.twitter.com/AE2nSsx5Nu
— Justin Trudeau (@JustinTrudeau) January 7, 2025
Given Trudeau’s prior anti-Bitcoin attitude, his resignation might pave the way for Canada to embrace cryptocurrency. Trudeau has also been heavily criticized for his weak economic policies and inflation.
In 2023, Trudeau chastised his political opponent and Leader of the Conservative Party of Canada, Pierre Poilievre, for advising Canadians to avoid inflation by owning Bitcoin. He claimed that if citizens had purchased the most valuable cryptocurrency, they would have lost half of their life savings.
During the 2022 Freedom Convoy demonstrations, the Trudeau administration also sanctioned 34 cryptocurrency wallets. The cryptocurrency community reacted strongly to this.
He also used the Emergencies Act to freeze the truckers’ bank accounts and restrict cryptocurrency payments.
Pro-Bitcoin candicates line-up as Trudeau steps down
With Canada’s federal elections coming up in October, Pierre Poilievre might take over the position. Poilievre has been a vocal Bitcoin supporter, pushing Canadians to participate in the asset class. In prior remarks, he has demonstrated his thorough comprehension of what money is.
Similar to Trump’s visit to PubKey in New York City to buy burgers using Bitcoin Lightning Network, Poilievre went to a local Bitcoin firm to buy meals with the cryptocurrency.
FUN FACT: Like Trump buying burgers with #Bitcoin, Canada’s Conservative Party Leader Pierre Poilievre also buys food with Bitcoin.
He is currently leading in the polls. Will Canada be the next country to adopt #Bitcoin?! 🇨🇦 pic.twitter.com/PMkB4J4BTx
— Nikolaus Hoffman (@NikolausHoff) January 6, 2025
However, Poilievre has suggested that a central bank digital currency (CBDC) would give the government too much control over money. He supported legislation to outlaw CBDCs in Canada, claiming them as a danger to privacy and economic freedom.
It’s time to put an end to creating a central bank digital currency in Canada.@MPTedFalk‘s Bill C-400 will: Ban central bank digital currency, protect cash use, ensure businesses accept it & maintain cash infrastructure.
Less government control = more freedom & privacy for… pic.twitter.com/i2zyln69Tj
— Pierre Poilievre (@PierrePoilievre) August 11, 2024
Mark Carney, a former Bank of Canada governor, is another probable candidate to succeed Trudeau. Carney has also served as governor of the Bank of England, where he expressed his support for cryptocurrencies and stablecoins.
In 2021, Trudeau’s opponent Carney stated that stablecoins should have access to a central bank’s balance sheet if they match certain criteria.
Furthermore, crypto enthusiasts in Canada now have the opportunity to vote for a pro-crypto leader, comparable to the US election in November. If this happens, Canada will follow the United States and El Salvador in adopting Bitcoin and other cryptocurrencies.
Furthermore, many Canadian governments and towns have previously advocated for cryptocurrency adoption to combat inflationary pressures. For example, the Vancouver City Council has formally passed a proposal to investigate becoming a Bitcoin-friendly city.
In a recent Cryptonews Spotlight episode, Lucas Matheson, CEO of Coinbase Canada, explored Canada’s place in the global cryptocurrency ecosystem.
“Canada is actually quite far ahead in terms of regulatory clarity,” he noted. “We are trying to build a long-term partnership with Canadians to help them build wealth and diversify into digital assets.”
XRP price prediction: Expert reveals how Ripple can hit $500B market cap
If Peter Brandt’s XRP price prediction comes true, the Ripple price may reach $8.7, with a market value of $500 billion. Here is why.
Even before the XRP price reached a seven-year high in December 2024, the crypto world had its eye on the Ripple coin. Although the Ripple token performed admirably with a high level of bullishness, the price is currently consolidating, which will restrict its performance. This is why analysts feel that the XRP has to climb higher to retain its bullishness, with a target price of $8.7 and a market capitalization of $500 billion. Interestingly, experts found out how this may happen, but if it doesn’t, the current Ripple price increase could be for nothing.
Bullish signals hint XRP price likely to rally soon
The XRP price has increased by approximately 370% in the previous two months as a result of Trump’s victory and its impact on the cryptocurrency market. XRP is presently trading at $2.42 and has a market value of $139 billion. Interestingly, XRP is now the third largest cryptocurrency in the world following its recent positive performance and Europe’s adoption of the Tether prohibition. This has happened despite the Ripple token’s consolidation and recent difficulties, but analysts anticipate more will follow.
Ali, a cryptocurrency expert, disclosed the creation of the supertrend indicator on the 12-hour chart, which flashed a buy signal for the first time since early November. The previous time this occurred, the XRP price increased by 470%, raising the prospect of a repeat performance. However, given the uncertainty and continuous consolidation, it is unclear whether the Ripple price would climb to the same level again, especially with a mixed bulls signal.
Ali, a cryptocurrency expert, disclosed the creation of the supertrend indicator on the 12-hour chart, which flashed a buy signal for the first time since early November. The previous time this occurred, the XRP price increased by 470%, raising the prospect of a repeat performance. However, given the uncertainty and continuous consolidation, it is unclear whether the Ripple price would climb to the same level again, especially with a mixed bulls signal.
Ripple (XRP) open interest skyrockets again
Despite Ali’s favorable XRP price prediction, technical indications show that the Ripple coin is supported by both bulls and bears. However, this is not the entire story, since futures data plainly shows that Open Interest is increasing. This indicates that investor interest in the Ripple coin has returned, raising the prospect of a breakout. Some experts see this as a potential for the establishment of a new bullish upswing, which will finally culminate in an XRP price increase.
The increasing open interest can benefit XRP’s performance, but time is the most important limitation. The continued consolidation may have an impact on market mood and the potential of a breakout.
Trader suggests XRP bull flag breakout needs to happen soon
With all eyes on XRP, crypto expert Peter Brandt has issued an extremely positive XRP price forecast. However, the XRP bull flag breakthrough must occur soon or the Ripple token’s price would fall. According to Brandt’s XRP prediction, the Half mast flag has formed, signaling a possible breakthrough. However, this pattern must be completed within six weeks to have a positive outcome; otherwise, it may end in a fall.
A bull flag pattern is a commonly used technical sign indicating a bullish rise. It denotes the construction of a flagpole on the price chart, indicating a fast price gain followed by a brief consolidation period, showing the flag, as seen in Bandt’s graph.
Brandt’s graph depicts a shaded arc showing several possible outcomes. If everything goes as expected, the XRP market capitalization might reach $500 billion, bringing the Ripple price to $8.7. However, the arc also shows the lower market cap of $28 billion, which would occur if the token fell.
What you should focus on?
With a 370% gain in the previous two months, XRP is almost at its peak, trading at $2.42. Nonetheless, XRP has entered a consolidation period, which has limited its success, although this might change dramatically shortly. Crypto experts predict a tremendous surge for the Ripple coin with the establishment of the Supertrend. Interestingly, the same supertrend will lead to a 470% rise in November 2024. If the bullishness continues, Peter Brandt thinks that the XRP price will reach $8.7 and have a market value of $500 billion. This might become more visible once the Bitcoin price approaches $100k again. Overall, the Ripple coin is poised for a large gain, as shown by its technical chart, but there are restrictions and limiting variables that might alter Ripple’s overall price trajectory.
