As we step into the dawn of a new year, the Bitcoin (BTC) market has once again become the focus of the financial world. Despite starting on a bullish note, the premier cryptocurrency quickly lost ground, slipping below $95,000 and stirring uncertainty among investors. This article aims to shed light on how the most valuable cryptocurrency may fare by the end of the month by examining Bitcoin’s historical returns and price patterns.
History of Bitcoin Returns in January
To better ascertain Bitcoin’s potential trajectory, we delved into the data sourced from the Coinglass platform, calculating Bitcoin’s average and median historical returns for each month. Since 2013, Bitcoin has shown an average positive performance in January, with a gain of 3.06%. Notably, six of the past twelve years have seen a negative performance in January, bringing the median return to a slight decline of -0.04%.
The returns were calculated by comparing Bitcoin’s value at the close of January 31 with its value at the start of the month. Bitcoin’s best January performance dates back to 2013, when the cryptocurrency surged by an astounding 44.05%. A similar scenario unfolded in 2023, with a gain of 39.63%, following a slight loss of 3.59% in December 2022.
However, not all January months have been kind to the premier digital asset. The most dismal start to the year was in 2015 when Bitcoin plunged by 33.05%, following one of the worst Decembers in its history, closing the month with a loss of 15.11%. Broadly speaking, historical data does not show a clear correlation between the performances of December and January.
Bitcoin Price Forecast for January 31, 2025
At the moment, Bitcoin is trading in the green at a level of $96,498, marking a 6% gain in 24 hours, above the closing price of December 2024 and the opening price of the new year. The asset has registered a staggering growth of 125% in a year.
Considering the median historical returns and the opening price of $93,401 on January 1, the asset could trade within a range between $93,027 and $96,259 by January 31, provided Bitcoin maintains its current trend.
Crypto and stock trader, Jelle, envisions a positive future for Bitcoin. In his latest analysis, he highlighted the asset’s strength in overcoming support test for the seventh time. If the bulls can sustain the momentum, the asset could experience a substantial price surge.
Predicting Bitcoin’s price remains a challenging task, and even historical results cannot provide definitive targets. The price trajectory of the leading cryptocurrency is also influenced by the supply and demand dynamics in the market, which are subject to both microeconomic and macroeconomic factors.
Market participants are expecting Donald Trump to sign executive orders on cryptocurrencies on his first day of office, January 20. Trump could potentially reverse Joe Biden’s crypto de-banking policies and loosen the existing regulations, which have been opposed by Republicans.
Best Wallet: A New Home for Your Bitcoin
Investors are exploring new means to manage their Bitcoin, and Best Wallet offers itself as an innovative choice for managing crypto assets. The intuitive platform provides an ecosystem that includes an integrated DEX and the Best Card debit card.
Along with these features, Best Wallet has launched its native token, BEST, which offers users access to exclusive benefits. These perks include transaction fee discounts within the Best Wallet ecosystem, higher rewards for staking, and the opportunity to participate in the best crypto pre-sales directly from the app via the ‘Upcoming Tokens’ feature.
FAQ 1: How has Bitcoin’s historical performance been in January?
Since 2013, Bitcoin has shown an average positive performance in January, with an average gain of 3.06%. However, six out of the last twelve years have seen negative performance in January.
FAQ 2: What are the predictions for Bitcoin’s price by the end of January 2025?
Considering Bitcoin’s median historical returns and the opening price of $93,401 on January 1, the asset could trade within a range between $93,027 and $96,259 by January 31, provided it maintains the current trend.
FAQ 3: What is Best Wallet?
Best Wallet is an innovative platform for managing crypto assets, which offers features like an integrated DEX and the Best Card debit card. It also offers its native token, BEST, which provides users with exclusive benefits.
