Bitcoin Surges Back Above $97,000, Defying Mid-Halving Cycle Predictions

Bitcoin surged back above $97,000 on Tuesday, recovering from Monday's dip below $90,000. This 6% climb over 24 hours ended the day's trading session in Asia

Bitcoin price recovered from Monday’s dip below $90,000 on Tuesday, surging back above $97,000. This 6% climb over 24 hours ended the day’s trading session in Asia near $96,000.

The cryptocurrency had faced predictions of a potential halving-cycle drop below $70,000, but managed to hold above that level. Its resilience surprised many, with some attributing the recent volatility to political factors rather than technical trends.

“Crypto markets can’t seem to decide how they feel about January,” said Charles Wayn, co-founder of Web3 infrastructure network Galxe, speaking to Forkast. “The recent swings are driven by macroeconomic and political news, not traditional market indicators.”

A stronger-than-expected U.S. jobs report triggered a market downturn last Friday, and fresh U.S. inflation data was released on Tuesday, showing a 0.2% rise in the Producer Price Index (PPI) last month.

“This signals the Federal Reserve’s intention to maintain its current interest rate stance, with no plans to raise or lower rates in the short term,” Wayn said.

Trump’s Pro-Crypto Stance Sparks Optimism

The return of Donald Trump to the presidency has added a layer of intrigue to the crypto market. Known for his pro-crypto stance during his previous campaign, Trump has reportedly planned a private crypto dinner this Friday ahead of his inauguration.

Rumors are swirling about potential pro-crypto policies being enacted “on day one” of his presidency, boosting market confidence.

“Trump's crypto-friendly policies could provide a feel-good boost for nearly 53 million U.S. investors, even amid grim macroeconomic conditions,” Wayn said. “While crypto might not be the top priority on day one, Trump understands the headlines it will generate.”

All-Time High on the Horizon?

If positive momentum continues, Bitcoin could hit a new all-time high within the next 10 days, according to Wayn, avoiding the feared drop below $70,000.

However, he noted that the market is still highly reactive to both good and bad news.

“Investors should avoid the noise and focus on projects and communities they care about,” he said. “Day traders, on the other hand, will face heightened challenges as sentiment-driven volatility persists.”

At the time of writing, Bitcoin is trading at $96,936.