Analyst Pointed to This Date as the Bottom Point in Bitcoin (BTC) Price!

As the US approaches its debt ceiling, analyst James Van Straten expects January 20, 2025 (President-elect Donald Trump’s inauguration day) in the current cycle Bitcoin He suggested that there could be an important bottom point for

In a recent analysis, Van Straten pointed to Treasury Secretary Janet Yellen’s letter to congressional leaders warning that the United States could reach its borrowing limit between January 14 and 23, 2025. Yellen said “extraordinary measures” may be required 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 upcoming debt ceiling has already created anxiety in the markets. Following the announcement, US stocks closed lower, while the S&P 500, Nasdaq 100 and Dow Jones Industrial Average lost around 1%. Bitcoin also declined, falling by up to 4% from its intraday high.

Historically, raising the debt ceiling has coincided with bearish signals for Bitcoin. Over the last 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 returned nearly 500%, closely mirroring its trajectory in the 2015-2018 and 2018-2022 cycles.

However, both previous cycles experienced significant declines at this stage, according to the analyst. This, combined with broader economic uncertainty surrounding the debt ceiling, points to potential challenges ahead for Bitcoin.

Adding to the uncertainty is the political transition process in which Donald Trump will take office as President on January 20, 2025. Van Straten suggested that this date could coincide with a very important moment for Bitcoin. “It is possible that Trump’s inauguration could mark a bottom for Bitcoin,” he said, citing historical cycles and current market conditions.

*This is not investment advice.