Informational

Market update: Bitcoin declines amid strong U.S. economic data

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Rachael Lucas
Market update: Bitcoin declines amid strong U.S. economic data

The weekly crypto close: Monday, 13th January 2025

TLDR

  • Bitcoin falls as robust U.S. economic data dampens sentiment.
  • U.S. government announces plans to liquidate 69,370 Bitcoins seized from the Silk Road.
  • Standard Chartered forecasts Bitcoin could hit US$200,000 by the end of 2025.
  • XRP concludes the week with a 4.38% rise, reaching US$2.5046.
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The weekly trading stats as of Monday, January 13th at 11:00 am AEDT, based on data from Tradingview in USD.

Welcome back

Happy New Year and welcome back to our Weekly Crypto Close. We hope you had a refreshing break and are ready to dive back into the latest trends, updates, and insights shaping the crypto market. As we kick off the year, we'll be keeping you informed on key market movements, regulatory developments, and emerging opportunities in the digital asset space.

Let’s get started with the first update of the year.

Market update: Bitcoin declines amid strong U.S. economic data

Bitcoin has closed the trading week at US$94,545.06, retreating from its recent high of US$108,530 in mid-December 2024. This decline follows stronger-than-expected U.S. economic data, which has bolstered the dollar and reduced expectations for the US Federal Reserve to cut rates.

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Adding to the selling pressure is the U.S. government's announcement to liquidate approximately 69,370 Bitcoins seized from the Silk Road marketplace. Valued at US$6.5 billion, this planned sale has further weighed on market sentiment.

Despite the pullback, analysts maintain a bullish outlook. Standard Chartered predicts Bitcoin could reach US$200,000 by the end of 2025, and technical indicators suggest the current dip mirrors previous consolidation phases. Analysts believe that as long as Bitcoin holds above the US$91,000 support level, a rebound remains possible within the US$95,000 to US$108,000 trading channel.

In altcoin performance, XRP was the standout, closing the week with a 4.38% gain to reach US$2.5046, making it the only top 20 cryptocurrency to end in the green.

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Meanwhile, Ethereum (ETH) struggled, declining more than 10% over the previous week to close at US$3,267.30. Attempts to push past the key resistance level at US$4,107 were met with strong bearish pressure, keeping ETH within its current consolidation range.

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The broader cryptocurrency market also faced a downturn, with total market capitalisation losing 5.48% for the week to close at US$3.23 trillion.

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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

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