Bitcoin – Why ‘Greed vs. Fear’ will be the trading decision to shape Q1

• Bitcoin is getting into a high-stakes sport, the place the daring might thrive
• Whereas FOMO builds, there’s nonetheless a lot to unpack

Two crashes in lower than a month might have you ever fascinated with exiting, however Bitcoin [BTC] is holding agency above $90k, defying the percentages.  Clearly, the market is gearing up for the subsequent Trump commerce to kick off – however the stakes couldn’t be greater. So, brace your self.

Market teetering on the sting of greed and concern

Regardless of the 2 main clashes with the Fed, Bitcoin’s repute as a protected haven is proving its value. A 12 months in the past, this shock might have triggered a a lot harsher response. However right here we’re – Bitcoin fell from its yearly excessive of $102k only a week in the past. And but, it’s nonetheless holding regular, down solely 7%. That’s resilience.

Now, with Trump’s inauguration looming, there’s discuss of a repeat of the This autumn rally that noticed Bitcoin surge to $108k. For a lot of, holding on to Bitcoin looks like a wise play proper now.

Nevertheless, there’s a catch. The dimensions of losses throughout this dip was laborious to disregard. Round 1.9 million BTC, purchased at $106k, are liable to being offered as soon as Bitcoin hits that worth, doubtlessly triggering a large $201 billion sell-off.

Supply: IntoTheBlock

With the aftermath of two main crashes nonetheless lingering, the choice to HODL feels unsure for a lot of. Exiting might seem to be the safer possibility fairly than holding out for greater returns. The greed-fear balance goes to be key within the coming days – It’s delicate, and positively one to maintain an in depth eye on.

Historical past exhibits that sturdy rallies are sometimes pushed by greed. When greed takes maintain, buyers develop into extra keen to threat all of it, believing the potential for greater returns ‘outweighs’ the specter of a crash.

Alas, with so many macroeconomic elements nonetheless within the combine, concern might simply dominate the market. If it does, a crash might rapidly flip from social media chatter to a full-blown actuality. 

It’s flight or battle for Bitcoin

Other than Trump’s inauguration, the January Fed meeting in simply 16 days might impression the market. On high of that, we’re about to get the final CPI and PPI inflation information earlier than the Fed’s determination.

With inflation sitting at 2.7%, nicely above the Fed’s 2% goal, it’s possible the central financial institution will keep hawkish, doubtlessly triggering a market pullback. These subsequent few days can be key.

Supply: US Inflation Calculator

Learn Bitcoin’s [BTC] Price Prediction 2025-26

Given all this, panic-selling may rise as Bitcoin hits key ranges. The Trump commerce may very well be in bother, and Bitcoin might face a troublesome 12 months forward. Clearly, the lengthy rally is below stress – concern might take over, making exiting the safer transfer.