Bitcoin could hit $160K in 2025, fueled by improving macro conditions

2024-12-14 09:54:26 Primitive Reading

From cointelegraph by Zoltan Vardai

Bitcoin’s price may surge to $160,000 in 2025, bolstered by improving macroeconomic conditions and easing global monetary policies, according to a report from crypto services provider Matrixport.

Bitcoin BTC$100,407 surpassed the $100,000 high for the first time on Dec. 6, in a long-awaited milestone in crypto history.

In a bullish signal for the Bitcoin price, the European Central Bank (ECB) lowered its key interest rates by 25 basis points to 3% on Dec. 12 in an effort to increase investment and economic activity in the region.

The People’s Bank of China also decided to cut its benchmark one-year lending rate by 40 basis points to 5.6 % on Nov. 21. It is the first rate cut in more than two years, as the economy has slowed.

Jag Kooner, head of derivatives at Bitfinex, noted the global trend of easing interest rates may drive investors toward risk-on assets like Bitcoin:

“This dual easing could spur capital flows into risk-on markets, including crypto. Combined with the traditional optimism seen in December markets, this may fuel a potential “Santa rally,” driving Bitcoin and other cryptocurrencies higher as investors allocate more capital into the space.

BTC/USD, 1-month chart. Source: Cointelegraph

However, the Federal Reserve’s forthcoming monetary decision on Dec. 18 could significantly impact Bitcoin’s price trajectory until the end of 2024.

Bitcoin to $160,000 by 2025. Source: Matrixport

This dynamic could bolster Bitcoin’s price to over $160,000 in 2025, according to a report shared by Matrixport in a Dec. 13 X post. Matrixport stated:

“Our projections indicate that Bitcoin could reach $160,000 in 2025, representing a +60% upside. This target aligns with the sustained demand for Bitcoin ETFs, the evolution of the macroeconomic environment and the expanding global liquidity pool.”

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.