What is the crypto community now expecting from Bitcoin?

We tell you why Bitcoin is falling and what members of the crypto community expect from cryptocurrency.

What’s happening with Bitcoin

On January 13, 2025, Bitcoin immediately dropped below $90,000. According to the CoinMarketCap resource, the 24-hour minimum of BTC was fixed at $89,260. The last time the coin traded below $90,000 was in mid-November 2024.

On January 14, the cryptocurrency started with a recovery. As of the time of writing this review, the Bitcoin rate stood at $95,280.

Why did Bitcoin fall?

There is no simple answer to the question of why Bitcoin is falling. Cryptocurrency is losing strength under the pressure of a combination of factors. Let’s look at them:

1. Possible sale of Bitcoin reserves by the US authorities. As of the time of writing, there are 207,189 BTC worth $19.7 billion under the control of American regulators, which is 0.987% of the entire cryptocurrency emission. At the beginning of January 2025, reports appeared in the media that the US authorities could begin selling bitcoins on the eve of Trump’s inauguration. Including, we are talking about $6.5 billion worth of coins confiscated from the darknet marketplace Silk Road.

Recall that Trump plans to create a Bitcoin reserve in the United States. The coins that the American authorities already have can become the basis for its formation. Therefore, the politician is categorically against the sale of BTC from US reserves. Unfortunately for Trump, the US Department of Justice as Furtune writesthere is access to cryptocurrency and permission to sell it.

A sale of a large volume of bitcoins from US reserves could hit the market hard. There have already been such precedents. For example, in the summer of 2024, BTC came under pressure from the sale of Bitcoin reserves by the German authorities.

2. Large crypto companies remain under regulatory pressuredespite Trump’s attempts to improve the situation of members of the crypto community. For example, on January 13, it became known that the largest crypto exchange Binance was unable to obtain a review of a class action lawsuit regarding the illegal sale of tokens with a dubious legal status, which also concerns its founder Changpeng Zhao.

3. Investors are losing hope for a further reduction in the key interest rate in the US. Latest labor market data reduce the likelihood that the Fed will decide to cut rates again. At the time of writing, over 97% of market participants thinkthat the regulator will keep the rate at the same level. For high-risk assets, this situation is negative. The Fed’s refusal to further reduce rates may reduce the investment attractiveness of crypto.

Following a strong December jobs report, leading banks such as Goldman Sachs and Bank of America (BofA) revised their forecasts for rate cuts. Instead of the expected three cuts in 2025, bankers now predict two, and BofA allows their absence or even an increase in rates.

4. Crypto remains under the weight of criticism. January 12, 2025 at interview for CBS JPMorgan Chase (JPM) CEO Jamie Dimon once again criticized Bitcoin. The banker claims that BTC has no value. He also drew attention to the popularity of cryptocurrencies among attackers. It is noteworthy that Dimon was previously predicted to become the head of the Ministry of Finance under Trump.

5. Outflows from ETFs. BTC’s situation is getting worse outflows from Bitcoin ETF. On January 10 and 13 alone, over $430 million was withdrawn from the funds.

What do investors expect from BTC?

Many members of the crypto community do not care why Bitcoin fell, as they are confident in the prospects for further growth of the market. Descent under $90,000, in their opinioncould be another opportunity to purchase cryptocurrency at an attractive rate before further growth. For example, such an optimistic point of view adheres to Doctor Profit analyst. He believes that BTC’s decline opens up opportunities for profitable long positions.

Crypto trader @DaanCrypto in turn paid attention on the similarity of Bitcoin’s movement patterns with the trajectory of December 2023 and January 2024. In his opinion, history may repeat itself, which means growth awaits BTC.

Also shop locally advises TRON founder Justin Sun. He believes that 2025 will be a great year for the crypto industry.

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