After hitting a local top of $102,702 on Tuesday, Bitcoin (BTC) crashed 5.16% in a single day. The sell-off continued into Wednesday, with BTC shedding an additional -5.68%, sending shockwaves across the crypto market. As of today, Bitcoin is trading at $95,073.0, marking its first significant crash in 2025.

This sudden downturn has left investors questioning whether this is the start of a steep correction or if BTC could recover quickly. What’s next for BTC price in January 2025? Let’s explore.

Bitcoin Price Today: Explaining BTC’s First Crash of 2025

Here are four reasons why Bitcoin crashed on January 7.

1. According to VeloData, Bitcoin’s Open Interest slumped by nearly $1B from January 6, 16:00 UTC, to January 7, 09:00 UTC, while the price moved sideways. This divergence denotes that investors were closing positions.
2. After clearing the $100K hurdle and ending its 11-day consolidation, Bitcoin entered a sell-side imbalance, extending from roughly $102K to $105K. 
3. With a spike in the US 10-year treasury yields, investors are concerned about stagflation amid the macroeconomic outlook.
4. Despite revisiting the $100K psychological level, BTC did not set up a higher high to flip the market structure bullish. Hence, profit-taking and bearish sentiment could be the fourth reason why Bitcoin collapsed.

After understanding why Bitcoin crashed, let’s look at key support levels and targets that could be achieved in January 2025.

Strategic Price Targets For January 2025?

The key support levels include the CME Gap, extending from $94,970 to $94,495, the value area low of $93,299, $92,266, and $90,835. Investors need to watch out for reversal signs at these levels. 

A move into any of these levels could provide an opportunity to accumulate. A bounce here should be a high-probability scenario and could push Bitcoin to revisit $100K and deep into the sell-side imbalance’s upper limit of $105K. Before the end of January 2025, traders can expect a correction to $90K, followed by a bullish retest of $105K.

From a long-term perspective, Bitcoin price prediction hints next ATH could be at the 161.8% Fibonacci level at $118,467.4.

Trump’s Inauguration Could Catalyze Rally

Donald Trump’s victory in the 2024 US Presidential Elections caused a spike in volatility and bullish momentum that pushed both cryptos and US equities higher. Hence, the upcoming inauguration of President-elect Donald Trump on January 20 could propel Bitcoin higher. Investors need to be patient until this event, as there might be consolidation or rangebound movement until then.

The crypto market is surging, drawing investors seeking lucrative opportunities. Among the best altcoins to buy, three standout assets show significant potential for explosive growth. Backed by bullish trends and strong fundamentals, these cryptocurrencies are positioned as promising investment options, making them must-watch contenders for major returns in early 2025.

Altcoins to Buy: ​​Cardano (ADA)

Cardano (ADA), a leading third-generation blockchain, is gaining traction for its eco-friendly proof-of-stake (PoS) consensus mechanism. Unlike energy-intensive proof-of-work networks, Cardano offers sustainable solutions. Over the past year, the ADA price has doubled, reaching $1.10. This growth stands out among the top altcoins to buy in 2025, presenting the potential for significant gains within the next 60 days.

Crypto analyst Ali has predicted a bullish breakout for Cardano (ADA), identifying a potential target price of $3. According to his recent analysis, ADA is forming a classic bull pennant pattern on the charts, a formation often associated with upward price momentum. 

DexBoss (DEBO)

DexBoss (DEBO) has initiated its token presale, pricing each token at $0.011. The listing price is set at $0.0505. The project introduces a deflationary buyback-and-burn mechanism designed to reduce supply and increase token value. DexBoss seeks to replicate centralized exchange features within a decentralized platform, offering a seamless DeFi experience. 

With a fixed supply and growing demand, the project aims to attract investors looking for long-term returns. DexBoss presents a compelling opportunity for individuals exploring decentralized finance advancements and the rapidly growing DeFi ecosystem.

Solana (SOL)

Solana (SOL), an open-source blockchain, is making waves in decentralized finance (DeFi). Supporting various decentralized applications (DApps), the SOL price increased by 4% in the past 24 hours, reaching $217. Over the last year, Solana’s market capitalization has grown by 125%, underscoring its rapid expansion within the layer-one blockchain ecosystem, making it the best altcoin to buy.

Solana led blockchain activity with $3.66 billion in daily trading volume, surpassing Ethereum’s $1.714 billion. Base followed with $1.207 billion, while Binance Smart Chain (BSC) and Sui recorded $877.64 million and $370.76 million, respectively.

Investors seeking altcoins to buy in 2025 should consider these three assets for their potential to outperform in the near term. With solid fundamentals and growth-driven roadmaps, they remain strong contenders for notable gains within a bullish crypto market cycle.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.