Bitcoin Set for Major Breakout by Jan. 29 FOMC Meeting: Here’s What to Watch
Bitcoin is poised for a pivotal price move by the end of January, coinciding with the U.S. Federal Open Market Committee (FOMC) meeting on January 29, according to Markus Thielen, head of research at 10x Research.
Bitcoin’s current trading pattern within a “narrowing triangle” suggests an imminent breakout. Whether BTC surges above or dips below its current price of $96,794 will depend on market reactions to key macroeconomic events.
“From a trading perspective, the best strategy is to follow the breakout direction,” Thielen stated in a January 14 report.
The FOMC meeting will mark the Federal Reserve’s first interest rate decision of 2025. Market participants are closely watching for signals on future rate cuts, with the CME FedWatch Tool indicating only a 38.3% chance of cuts in the first half of the year.
Expectations for a higher Consumer Price Index (CPI) reading have grown. If inflation eases more than anticipated, Bitcoin could see a bullish rally, as lower inflation often boosts risk-on assets like crypto.
Donald Trump’s inauguration on January 20 has also captured attention. Crypto analyst Lark Davis noted that Bitcoin’s price action resembles the lead-up to the 2021 presidential inauguration. Before Biden’s term began, BTC dipped to $30,000 but rebounded to $55,000 shortly after.
“History doesn’t repeat, but it often rhymes,” Davis remarked, hinting at a potential post-inauguration rally.
Thielen remains cautious, predicting Bitcoin will stay range-bound until mid-March due to limited market catalysts. However, traders should prepare for volatility as macroeconomic factors, including the FOMC decision, take center stage.
Will Bitcoin defy the odds and rally post-FOMC meeting, or will hawkish Fed policies push it lower? All eyes are on January 29.
