Since January 1, 2025, the Bitcoin price has fallen 3.38%. Analysts said the price drop this month was not surprising, highlighting how the Bitcoin market reacted in January following the halving. Analysts express optimism about BTC’s growth potential in 2025, predicting that the market could mirror the performance of the previous cycle with an impressive 130% rally this year. The big question is how much higher the market can go. Want to know more? Read on!
Why Bitcoin Price Falls in January
Over the past seven days, the Bitcoin market has fallen by at least 7.4%. It fell 2.9% in the last 24 hours alone. BTC’s monthly return is -3.38%.
Analysts suggest that Bitcoin typically experiences a price decline in January following the halving.
In January 2013, the BTC market performed 49.9%. In January 2017, the market showed a change of +0.70%. In January 2021, the market performed +14.3%.
Bitcoin’s Historical Performance in Halvings and Market Cycles
Analysts note that at the peak of the previous halving cycle, the Bitcoin market experienced a bullish rally of 130%.
Additionally, BTC typically performs well in the third year of a four-year market cycle.
In 2013, the third year of the first four-year market cycle, the market grew 5,435%. In 2017, the third year of the second four-year cycle, the market rose +1,369%. 2021, the third year of the previous cycle, saw a 56.6% surge despite the market being threatened by the pandemic. 2025 is the third cycle of the current cycle, which started in 2023.
Analysts are optimistic about BTC
Analysts have predicted that the price of Bitcoin could soar to $200,000 this year if historical trends continue.
In conclusion, Bitcoin’s January decline may have investors nervous, but history shows that Bitcoin often sets the stage for large rallies. This year could bring change for cryptocurrency enthusiasts, as analysts expect the price to surpass $200,000 by 2025.