Bitcoin Price Forecast: What’s Behind BTC’s Rise Today?

After a steep drop in late December due to the Federal Reserve's aggressive policies, the market is beginning to bounce back as we enter the third week of January.

Significant events, such as the CPI report, the FOMC meeting on January 29, and the effect of Trump's inauguration on January 20, could significantly impact Bitcoin's path and propel it further.

Emerging projects like PlutoChain ($PLUTO) are also garnering attention. With sophisticated Layer-2 solutions and enhanced transaction speeds, PlutoChain might overcome some of Bitcoin's existing hurdles and unlock new features.

Bitcoin Price Outlook – Could Trump’s Inauguration Trigger Another BTC Surge by February 2025?

At present, Bitcoin (BTC) is valued at roughly $103,900, marking a 1.05% drop from its last closing price.

Bitcoin's Relative Strength Index (RSI) is currently at 65.045, indicating that the asset is nearing overbought territory.

Looking at moving averages, Bitcoin's 50-day Simple Moving Average (SMA) is at $99,416.28, with the 200-day SMA at $96,330.46. The fact that the 50-day SMA is above the 200-day SMA indicates a bullish trend.

Key resistance points to watch include the significant $100,000 mark and the crucial $106,000 level.

Bitcoin's value has climbed back to $100,000 after a dip to around $90,000 earlier this month, amid talk that Trump's actions could again shake the market.

The forthcoming CPI report is a major focus, with favorable inflation numbers possibly elevating Bitcoin's price. 

Additional factors, such as the comeback of institutional investors, increased stablecoin creation, and renewed influx into spot Bitcoin ETFs, might offer further support.

Leading crypto companies, including Ripple, Coinbase, Kraken, Robinhood, and Circle, have together donated over $10 million to Trump’s inaugural fund.

Executives are congregating in Washington as the president-elect gets ready to assume office, sparking speculation about executive orders that might alter crypto policy. 

Trump, known for his crypto-friendly views, is predicted to issue directives on January 20, one of which could potentially trigger a surge in Bitcoin's price.

Galaxy Digital's CEO has boldly predicted that Bitcoin might reach $500,000 if a reserve system is adopted.

Meanwhile, Crypto Rover forecasts the price might hit $280,000 following Trump's inauguration.

In contrast, analyst VirtualBacon predicts Bitcoin will reach $200,000 by the end of the year, citing factors such as increased liquidity from the Federal Reserve, pro-crypto policies, rising ETF inflows, and a possible altcoin season contributing to the rise.

Can PlutoChain’s Hybrid Layer-2 Solution Unlock BTC’s Full Potential in 2025?

PlutoChain ($PLUTO) is a robust Layer-2 solution that aims to enhance Bitcoin’s capabilities for DeFi, NFTs, and advanced blockchain applications.

Bitcoin’s network frequently faces issues with slow transaction speeds, high fees, and congestion – though this may soon change.

PlutoChain could resolve these issues by developing a hybrid Layer-2 network to alleviate traffic, reduce costs, and increase scalability.

With block times of only 2 seconds—compared to Bitcoin’s 10-minute intervals—PlutoChain could enable quicker, more efficient smart contract execution while preserving Bitcoin’s trusted infrastructure.

EVM compatibility is also a feature that might allow developers to seamlessly port Ethereum-based projects to PlutoChain. 

This could pave the way for new possibilities in DeFi, NFTs, and AI applications, extending Bitcoin’s role beyond just a store of value.

During its testnet phase, PlutoChain processed 43,200 transactions in a single day without any congestion, highlighting its potential for practical applications.

Security remains a top priority for PlutoChain. The platform has been audited by SolidProof, QuillAudits, and Assure DeFi.

Continuous code reviews, stress testing, and compliance with global standards ensure its dependability. Moreover, PlutoChain encourages community involvement and transparency by allowing users to participate in voting on updates, partnerships, and features through its official Discord channel.

Conclusion

With Trump’s inauguration nearing, there is growing optimism about Bitcoin's prospects. Speculation about increased institutional interest and potential regulatory shifts could propel the cryptocurrency leader to new heights in the upcoming months.

Meanwhile, PlutoChain ($PLUTO) may play a crucial role in overcoming Bitcoin’s longstanding obstacles.

With a potential mainnet launch on the horizon, keeping an eye on PlutoChain might be worthwhile to see if it gains significant traction. 

Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Bitzo, nor is it intended to be used as legal, tax, investment, or financial advice.