21Shares Founder Predicts Bitcoin Won’t Hit New High in January

Market Outlook for Bitcoin Amid Current Volatility

Market analysts are weighing in on Bitcoin’s prospects as volatility persists through the end of 2023. Ophelia Snyder, co-founder of 21Shares, suggests that the current macroeconomic conditions will hinder Bitcoin’s ability to replicate its early 2025 rally into 2026, emphasizing that prevailing uncertainty is unlikely to resolve in the near term. Despite historical seasonal patterns, Snyder highlights that a repeat of January’s typical influx of investors remains uncertain this year due to subdued market sentiment.

Market Dynamics and Historical Trends

Snyder pointed out that January often witnesses renewed inflows into Bitcoin-focused exchange-traded funds as investors rebalance portfolios. However, with Bitcoin currently trading at around $92,150—down nearly 10% over the past month—market participants remain cautious. Bitcoin soared to a peak of approximately $109,000 in early January 2023, just prior to Donald Trump’s inauguration, amid speculation that his policies could bolster the crypto sector. Contrasting that, Bitcoin recently hit a high of $125,100 in October but then experienced a sharp downtrend after a significant crypto market liquidation event on October 10, which saw the market lose around $19 billion in value.

Bitcoin trading at approximately $92,150 at the time of publication. Source: CoinMarketCap

Despite its recent setbacks, Snyder remains optimistic about Bitcoin’s long-term outlook, viewing the current correction as a broader risk-off behavior rather than a sector-specific downturn. She notes that external macro factors like rising interest in crypto ETFs, increasing governmental adoption, and a growing appetite for alternative stores of value could propel Bitcoin higher in the future.

Potential Catalysts and Risks

Snyder highlights that a broader risk-off environment, coupled with strong gold markets, could limit Bitcoin’s upside potential. Conversely, the expansion of institutional interest through ETFs and increased regulatory clarity could serve as catalysts for robust growth. Meanwhile, some industry insiders forecast a positive trajectory aligning with historical trends. Tom Lee, chair of BitMine, predicts Bitcoin will reach new heights before January 2026, based on historical January returns averaging 3.81% since 2013, per CoinGlass.

This article was originally published as 21Shares Founder Predicts Bitcoin Won’t Hit New High in January on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.