10X Research: 'Trump Rally' Could Be Killed by the Fed

"US Fed Holds Rates, Could Dampen BTC Rally"

Cryptocurrency market analysis firm '10X Research' has forecast that the 'Trump Rally' that cryptocurrency investors are hoping for could end quickly due to the Federal Reserve's (Fed) decision to delay interest rate hikes.

In a report released on the 5th, 10X Research explained that according to the Fed's interest rate decision announcement, the BTC rally due to Trump's inauguration as US President on the 20th this month could end by the end of this month.

The report stated, "January is expected to have a positive start despite the volatility, but the rally momentum is likely to weaken quickly afterwards," and "The market is likely to decline around the FOMC press conference on the 29th."

In fact, on December 19th, the Fed left a hawkish message about delaying interest rate cuts through the FOMC press conference, which had suppressed the market's rebound. Fed Chair Jerome Powell commented in the FOMC press conference that "the number of interest rate cuts in 2025 will be reduced from 5 to 2," and BTC fell by about 5%.

Reflecting Powell's comments, the CME Group's FedWatch tool predicted an 88.8% probability that the Fed will hold rates in January.

10X Research pointed out that the Fed is a 'major risk' that will disrupt the BTC rally in 2025.

The report said, "While inflation is expected to be lower this year, it will take time for the Fed to officially recognize and respond to this change," and "BTC's price is expected to reach $97,000-$98,000 by the end of January."

Reporter Kwon Seung-won ksw@blockstreet.co.kr