Analysts See Bitcoin’s January Pullback as a Setup for Future Gains: Guest Post by Coinpaper.com

Analysts specifically pointed to historical January corrections in 2017 and 2021 that preceded large price surges. Some predictions suggest that Bitcoin could reach over $200,000 by year-end if the trend continues. However, concerns about profit-taking and rising risk levels still persist, fueled by macroeconomic pressures and market dynamics. Meanwhile, corporate adoption of Bitcoin as a treasury asset is still gaining traction with Heritage Distilling joining the trend.

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Bitcoin’s January Decline Could Signal Rally

Bitcoin's price movement in January 2025 has drawn comparisons to previous post-halving years, and analysts suggest that a correction in the first month of the year following a halving event is not unusual. Crypto analyst Axel Bitblaze pointed out this trend on X, and stated that Bitcoin historically experienced similar corrections in post-halving cycles. Bitblaze specifically referenced the January corrections in 2017 and 2021, which were followed by large rallies later in the year.

Bitcoin reached a high of around $102,300 on Jan. 7, but since fell 10% to just below $92,000. This movement is similar to the pattern that was seen in January of 2021, when Bitcoin dropped over 25% from $40,000 to $30,000 before rallying 130% to a record high of $69,000 by November. Similarly, in January of 2017, Bitcoin fell 30% from $1,130 to $784, only to surge 2,400% by the end of the year.

YouTuber and analyst Crypto Rover also noticed that Bitcoin consistently experienced dips during the first half of January. He also suggested that the current decline is relatively minor compared to previous corrections.

The financial analysis account Stockmoney Lizards also weighed in on the issue, and stated that Bitcoin still has to to enter its ”ultimate hype/pump phase” and pointed to factors like mass adoption, pro-crypto government policies, and the emergence of Bitcoin exchange-traded funds (ETFs) as key drivers for the ongoing cycle.

Stockmoney Lizards further speculated that if Bitcoin follows a trajectory similar to the peak year of the previous cycle, a 130% surge from current levels could propel the cryptocurrency to over $200,000 by the end of 2025. However, they warned that another correction on the scale of past January declines could see prices fall below $70,000 before any recovery.

Bitcoin Analysts Warn of Rising Risk Levels

Bitcoin market participants have been warned to be very careful in the coming months as some analysts expect further profit-taking and elevated risk levels. Renowned Bitcoin analyst Willy Woo warned on Jan. 10 that risk is peaking for the first time in this cycle.

He stated that there is still profit-taking to come before the market resets, and urged traders to take a cautious approach despite the seemingly bullish sentiment. Woo's Bitcoin local risk model indicates risk levels not seen since January of 2023.

The market sentiment for Bitcoin is still in the “Greed” zone, according to the Fear & Greed Index, which is a decent increase from the “Neutral” score of 50 earlier in the month. After its retracement from the $100,000 psychological level on Jan. 8, Bitcoin has struggled to reclaim that mark, currently trading at close to $92,000, according to CoinMarketCap.

Bitcoin’s price action over the past month (Source: CoinMarketCap)

Some analysts suggest that the recent dip may not last very long. Pseudonymous crypto trader Rekt Capital pointed out that Bitcoin’s 15% pullback from its brief all-time high of $108,000 on Dec. 17 aligns with historical patterns that indicate a high probability of a reversal. Similarly, Samson Mow, CEO of Jan3, argued that current dips are artificially manufactured to create buying opportunities for larger players. He believes that they do not reflect true market conditions.

Adding to the market dynamics, the release of stronger-than-expected US December nonfarm payrolls data and lower unemployment figures pressured risk assets, including Bitcoin. While concerns about macroeconomic factors still linger, the outlook for BTC’s next move is still very mixed.

Shareholder Pushes Meta to Invest in Bitcoin

A shareholder proposal that was submitted by Ethan Peck called on Meta to allocate a portion of its $72 billion in cash and short-term cash equivalents to Bitcoin as a hedge against currency devaluation. Peck argued that Meta’s cash reserves are losing value due to inflation, and pointed out Bitcoin’s 1,262% outperformance of bonds over the past five years as a very compelling reason to adopt the asset. Peck also revealed that Mark Zuckerberg named his goats “Bitcoin” and “Max,” and that Meta director Marc Andreessen is also a director at Coinbase and a known Bitcoin advocate.

Peck is an employee of The National Center for Public Policy Research, and submitted the proposal on behalf of his family’s shares. The organization is a Washington DC-based think tank promoting free market policies, and has also brought similar proposals to other major tech firms.

In December of 2024, Microsoft shareholders voted against a proposal recommending the allocation of at least 1% of the company’s $484 billion in assets to Bitcoin. A similar proposal was submitted to Amazon shareholders for consideration at their April 2025 meeting.

The organization argued that traditional measures of inflation, like the Consumer Price Index (CPI), underestimate the true rate of inflation, which they believe is double the CPI. They proposed Bitcoin as a strategic alternative to preserve corporate cash reserves.

However, industry experts suggest that Big Tech companies are still a bit hesitant to adopt Bitcoin as a treasury asset. Nick Cowan, CEO of fintech firm Valereum, pointed out that the size and profitability of these companies actually make them less inclined to take on the risks associated with Bitcoin’s volatility. Cowan also mentioned that the lack of yield-bearing opportunities for Bitcoin is also a deterrent that makes it unlikely for major firms to allocate big portions of their assets to the cryptocurrency.

Heritage Distilling Embraces Bitcoin

While larger tech companies might not be interested in adding Bitcoin to their stockpile, Heritage Distilling, a Washington-based craft spirits producer, recently announced plans to accept Bitcoin as payment and hold it as a treasury asset. This will make it the first publicly traded spirits company to integrate Bitcoin into its business model.

On Jan. 10, the company introduced a Bitcoin treasury policy allowing customers to pay with Bitcoin via its e-commerce platform, though its website indicates that Bitcoin payments will be accepted “soon.” The company stated that the potential benefits of attracting a new customer base and the possibility of Bitcoin increasing in value far outweigh the risks associated with price volatility.

Heritage Distilling website homepage

This decision was made after the establishment of Heritage’s Technology and Cryptocurrency Committee, which is chaired by Matt Swann, a former chief technology officer at Nubank. He was appointed to the Board of Directors on Jan. 6.

Heritage has been facing some financial challenges with its third-quarter 2024 earnings report showing $1.76 million in revenue and a $3.43 million net loss. Industry experts, including VanEck’s head of digital assets research, Matthew Sigel, are sceptical about the company’s ability to acquire Bitcoin holdings given its current financial struggles.

Heritage’s announcement aligns with a growing trend of corporate adoption of Bitcoin as a treasury asset. MicroStrategy, which is the largest corporate Bitcoin holder, pioneered this strategy in 2020 by amassing 447,470 BTC valued at $42.4 billion. Other public companies, including Marathon Digital, Riot Platforms, and Hut 8 Mining, have followed suit by contributing to the collective 597,644 BTC held by the top 70 public companies, according to HODL15Capital.

Smaller companies have also started exploring Bitcoin for treasury management. Cosmos Health announced plans to include Bitcoin and Ethereum in its reserves in November, while Acurx Pharmaceuticals approved a $1 million Bitcoin purchase later that month. In December, Worksport, a clean energy solutions company, allocated up to 10% of its operational cash to Bitcoin and XRP.

Analysts See Bitcoin’s January Pullback as a Setup for Future Gains

Table of Contents

Bitcoin’s January Decline Could Signal Rally

Bitcoin Analysts Warn of Rising Risk Levels

Shareholder Pushes Meta to Invest in Bitcoin

Heritage Distilling Embraces Bitcoin

Coinpaper.com

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