The outlook for altcoins is mostly positive, with increases of up to 5.2% led by Cardano and Hedera (3.6%). Meanwhile, the declines of up to 2.8% respond to Avalanche and Chainlink.
The cryptocurrencies take a break this Tuesday, after the gains recorded on Monday. Bitcoin (BTC) remains trading above US$100,000, after advancing 2% in the last day, while Ethereum (ETH) seeks to reach US$3,700.
The outlook for altcoins is mostly positive, with increases of up to 5.2% led by Cardano and Hedera (3.6%). Meanwhile, the declines of up to 2.8% respond to Avalanche and Chainlink.
According to analysts, the return to normal activity after the Christmas holidays boosted the cryptocurrency market. This is reflected in the significant capital inflows into bitcoin exchange-traded funds (ETFs) in cash during the last two sessions. Specifically, andThese investment products raised 908 million last Friday and 978 million this Monday. BlackRock’s IBIT fund led these inflows with more than $450 million, followed by Fidelity’s FBTC, which exceeded $350 million.
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Analyst Antonio di Giacomo, from XS.com, points out that the Bitcoin’s return to these historic levels occurs in a unique political and economic context. The expectations generated by the next presidency of Donald Trump, which begins on January 20, 2025, appear to have boosted optimism in several sectors, including cryptocurrencies. Trump has placed cryptocurrencies as a priority on his political agenda, with proposals such as the creation of a strategic bitcoin reserve and the appointment of pro-crypto figures in key positions, such as Scott Bessent at the head of the Treasury. This environment, according to experts, could provide stability and confidence to the speculative asset market.
The Fed generates nervousness in risk assets
Despite the optimism, The next meeting of the Federal Reserve (Fed), scheduled for January 28 and 29, generates uncertainty. At its latest meeting, the Fed, led by Jerome Powell, warned of a more cautious approach to interest rate cuts this year in response to persistent inflation and economic strength. Analysts fear this more restrictive stance could limit capital flows into riskier assets like bitcoin.
Javier Molina, market analyst at eToro, highlights that the concentration of capital in technological mega-capitalizations, closely related to bitcoin, could generate long-term tensions. According to Molina, this scenario presents both risks and opportunities for investors who strategically manage their exposure.
From the technical point of view, Molina points out that bitcoin respected the initial support at US$92,000which acts as a key control zone. Although it has tried to surpass $98,000, this resistance remains in place. “We need to see prices above $100,000 to confirm a new bullish leg,” Molina concluded.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
