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Analyst Pointed to This Date as the Bottom Point in Bitcoin (BTC) Price!
As the US approaches the borrowing limit, analyst James Van Straten has suggested that January 20, 2025 (the day Donald Trump was inaugurated as president) could be an important low point for Bitcoin in the current cycle.
In a recent analysis, Van Straten drew attention to a letter from Treasury Secretary Janet Yellen to congressional leaders warning that the U.S. could reach its borrowing limit between January 14-23, 2025. Yellen said that 'extraordinary measures' may be needed to prevent a federal default and called on Congress to take immediate action to 'preserve the full faith and credit of the United States'.
The approaching debt ceiling has already created unease in the markets. Following the announcement, US stocks closed lower, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average losing around 1%. Bitcoin also declined, dropping up to 4% from its intraday high.
Historically, raising the debt ceiling has coincided with bearish signals for Bitcoin. In the past five cycles, BTC has either declined or underperformed in the days following debt ceiling adjustments.
Van Straten, drew parallels between Bitcoin's current price movement and its performance during previous market cycles. Since the November 2022 low triggered by the FTX crash, Bitcoin has delivered approximately 500% returns closely mirroring its trajectory in the 2015-2018 and 2018-2022 cycles.
However, according to the analyst, significant declines were experienced at this stage in the previous two cycles. This situation indicates potential challenges awaiting Bitcoin when combined with broader economic uncertainty surrounding the debt ceiling. Please provide the text to be translated. Adding the political transition process where Donald Trump will take office as President on January 20, 2025, to the uncertainty can be significant for Bitcoin, according to Van Straten. Referring to historical cycles and current market conditions, he said, "It is possible that the start date of Trump's term indicates a bottom for Bitcoin."