Bitcoin BTC/USD is expected to reach a new all-time high in mid-January, according to a prediction by research firm K33. This anticipated peak coincides with the inauguration of Donald Trump. K33’s analysis is based on historical patterns, suggesting that the final peak of this crypto cycle may occur on Jan. 17.

What Happened: In a recent report, K33 has identified the incoming administration’s favorable stance on cryptocurrency as a key factor driving Bitcoin’s recent surge past the six-digit mark. Promises of a more supportive regulatory environment in Washington have contributed to this rally. However, K33’s head of research, Vetle Lunde, warned that market expectations might be overly optimistic regarding the pace of policy changes.

K33 advised that the mid-January peak could be an ideal time for investors to reduce risk and secure profits in the short term. The firm used two methods to project Bitcoin’s price, estimating it could reach $146,000 based on past cycle peaks or $212,500 considering market capitalization growth.

See Also: Quantum Computing Stock QUBT Has More Than Doubled While Bitcoin Has Dropped Since Google’s ‘Willow’ Reveal: What Does This Mean?

Meanwhile, Adrian Zduńczyk, a market technician, cautioned about potential corrections between late January and February, with declines ranging from 15% to 30%. Separate research by CCData also indicated a peak next year, albeit on a different timeline, following Bitcoin’s last halving event in April.

Why It Matters: The prediction of Bitcoin’s peak comes amid a backdrop of fluctuating market conditions. Recently, Bitcoin experienced a dip below $93,000 as the “Santa Claus Rally” lost momentum, but it quickly rebounded to $93,600 as traders seized the opportunity to buy the dip. This volatility highlights the unpredictable nature of the cryptocurrency market.

Additionally, prominent figures like Bill Gates have expressed skepticism towards Bitcoin, questioning its productivity as an asset class. In contrast, Anthony Pompliano has likened owning Bitcoin to holding digital real estate, emphasizing its strategic importance in the global digital economy.

Price Action: At the time of writing, BTC was trading at $93,455.35 at 2:48 AM ET, as per Benzinga Pro.

Read Next: 

• US Stocks Likely Headed For 10% Correction, Says Top Strategist, Points Out ‘Horrible Market Breadth:’ Trump’s Tariff Plans, Musk Co-Led DOGE Could Be Partially To Blame For Decline

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Shutterstock