Cryptocurrency Market Shows Rapid Movement in January 2025
In January 2025, the cryptocurrency market demonstrated its ability to move swiftly, reminiscent of its dynamic periods in late 2024 and throughout its history.
Bitcoin’s Roller Coaster Journey
Bitcoin (BTC) embarked on a significant journey at the start of the year, experiencing lows just below $90,000 as recently as January 13. However, it quickly rebounded to reach new all-time highs (ATH) exceeding $108,000 by January 20.
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Currently, BTC has gained 14.40% year-to-date (YTD), trading at $107,378.
Analyzing Bitcoin’s Next Move
Given the current volatility, many traders are eager to predict Bitcoin’s next movement. The key question remains: can the current upward trend continue throughout the remainder of January, or is a downturn imminent?
Finbold AI’s Bitcoin Price Forecast for Early February
To tackle this uncertainty, Finbold employed its proprietary artificial intelligence (AI) price prediction tool to estimate Bitcoin’s performance from January 20 to February 4.
Out of the five advanced models used by Finbold’s AI, four projected a decline. On average, they predicted that Bitcoin would settle at $104,576, representing a 2.6% decrease from the current price.
The most bearish model, ChatGPT-4o mini, utilized various trading indicators such as the relative strength index (RSI) and the simple moving average (SMA) to predict a 9.4% drop, with Bitcoin trading at $98,000 by early February.
Meanwhile, the standard ChatGPT-4o predicted a 5.24% decline, placing BTC at $102,500. Other models, Claude 3 Opus and Grok 2 Vision, offered more conservative estimates, forecasting a 3.04% and 2.93% drop, respectively.
However, Claude 3.5 Sonnet stood out with a more optimistic outlook, suggesting Bitcoin could achieve new highs at the beginning of February, reaching $112,500, a 4.01% increase from January 20.
Factors Suggesting a February Bitcoin Price Correction
Despite the impressive momentum seen at the start of January, the reasoning behind the AI’s forecasts is clear. Strong rallies often precede notable pullbacks, aligning with a potential drop to around $100,000 by early February.
Currently, Bitcoin is benefiting from several significant external tailwinds. Notably, the latest Consumer Price Index (CPI) report, while slightly concerning due to an inflation uptick, acted as a catalyst for various assets as it underperformed against expectations.
Additionally, the inauguration of Donald Trump as a digital asset-friendly president and the exit of Gary Gensler, a perceived adversary of the industry, from the SEC Chair position on Monday could further bolster the cryptocurrency market.
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