2025, Jan 1 - Jan 7

The 2024 market had its highest rise in history with Nasdaq up, over 35%, the S7P 500 up, almost 27%, and Bitcoin with the staggering milestone of hitting over $108,000. However, the historical “Santa Rally” had been “canceled” according to crypto influencers, in part of the complexities of interest rates and the South Korean political instability. Although the latter part of December wasn’t in our favor, looking back at the charts, September, October, and November, were record breaking rallies in the history of Bitcoin with over 120%. This really means we are good hands because Bitcoin was so, in fact, bullish that Wall Street was taking profits. January has historically been a very strong segment for the crypto and stock market, and with the President-elect Trump coming into office will only drive up the prices of Bitcoin even higher. Everyone is excited for this month and the coming months of 2025 because this will be a strong year for crypto unlike anything in the past. Fundstrat’s Tom Lee has announced his Bitcoin prediction of $250,000 by the end of 2025. Now this is a statement. Tom Lee has been a very bullish public figure, appearing in CNBC’s crypto world. His 2024 prediction of $150,000 may have been overreaching, but the overall market seemed to agree with his reasons for up cycles. 

The overall investing world has been seeing a continuation of an upward movement with the recovery phase of Bitcoin and crypto, toward the end of the week. Bitcoin’s price of over $102,000 is explained with a staggering $981 million in ETF inflows on January 6, and MicroStrategy’s Micheal Saylor tweet of acquiring another “1070 BTC of $94,004.” Panic selling in the last 2 weeks of 2024, segues into a rather bullish start of the new year, with even more hype of the current US political stance on crypto. As of today, January 7, crypto seems to be having a slump with 4.88% down, right after hitting the high of this early year. Despite the initial dumps, and a surprising recovery, the first week of January showed a sideways graph, showing uncertainty for the short term.

Considering the US government hiring pro-crypto politicians and using Bitcoin as a national strategic reserve currency, this cycle is definitely different. Recently, countries and BRICS have already adopted Bitcoin or blockchain technology as legal tender with China experimenting with the digital yuan (e-CNY), for international trade and cross-border transactions, and India’s CBDC, the digital rupee using a decentralized crypto exchange system. These political involvements drove Bitcoin’s price from 92,500 to 98,000 in November. In President-elect Trump’s campaign, he had promised, the United States’ possible coherent strategy to increase engagement with digital currency is to maintain the USD position as the world's leading currency, and somehow finally easing the national debt. Assuming the US reserve currency goes as planned, other countries following this path of utilizing Bitcoin, and instead of hoarding and selling, is a huge step forward for crypto. However, a tweet by James Van Straten caught Yahoo Finance’s eye, stating that Trump will most likely not use BTC as a reserve currency, and instead “buy in the background.” Here’s why that may be: the world already knows that Bitcoin is now credible, and most certainly, bullish. America is already the world’s largest bitcoin holder by country and is already pro-crypto, as said earlier. Claiming that he would set the Bitcoin reserve currency the first day in office, we will find out whether it is true or not on January 20th. 

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