Trump-led Bitcoin rally may weaken at FOMC meeting later this month

The expected Bitcoin rally ahead of President-elect Donald Trump's inauguration on January 20 (local time) could be triggered by the Federal Reserve's first meeting at the end of this month.
Markus, founder of 10x Research, said the outlook is that the rally may weaken following the announcement of the rally.
Thielen cited the Federal Reserve's decision as the main risk factor that could halt Bitcoin's rise.
"After a positive start in early January, Bitcoin has been trading at a record high of 1.5% above the CPI on January 15," Markus Thielen said in a report published on the 5th.
"We are likely to see a slight correction ahead of the release of the CPI inflation data, followed by a rise again ahead of President Trump's inauguration."
"A positive CPI release could revive optimism and spur a rally leading up to Trump's inauguration," Thielen said.
"However, this momentum may weaken as markets retreat somewhat ahead of the FOMC meeting on January 29," he added.
According to CME Group's FedWatch tool, the U.S. Federal Reserve Bank of America (Fed) rate is expected to remain at 4.25% to 4.50% following the January 29 FOMC meeting.
Bitcoin fell about 15% to 92,800 after the FOMC meeting on December 18, as the outlook for interest rate cuts in 2025 dropped from five to two.
Marcus Tillen pointed to the Federal Reserve announcement as the "major risk factor" for Bitcoin's rally in 2025, saying "inflation will fall this year.
"We expect this to continue, but it may take time for the Federal Reserve to officially recognize and respond to this change."