As we approach 2025, Bitcoin (CRYPTO: BTC) is facing challenges in a changing macroeconomic environment, with diminishing support and growing concerns about its momentum, according to a recent report. The Federal Reserve’s more cautious stance, combined with broader macroeconomic issues, suggests a year of increased caution for traders and investors, as highlighted by a 10x Research report. The report warned that certain indicators indicate a potential slowdown in Bitcoin’s performance.
The recent failure of Bitcoin’s breakout from a wedge pattern has raised doubts about its bullish trend. Traders are being advised to stay alert as technical signals point to higher risks in the cryptocurrency market. The report emphasizes that Bitcoin’s ability to maintain its current support level is heavily influenced by external factors that may no longer be favorable.
An area of concern is the diminishing impact of MicroStrategy’s aggressive Bitcoin accumulation. Despite the company’s significant purchase of approximately 159,000 BTC since November, Bitcoin’s price increase has been modest, and MicroStrategy’s stock price has remained stagnant. This disparity raises questions about the overall strength of the market and suggests that even substantial positive catalysts may no longer be sufficient to drive prices higher.
The report also discusses the potential influence of monetary policy on Bitcoin’s outlook for 2025. The Federal Reserve’s decision to halt rate hikes in late January 2024 initially caused a rally, but the lack of a clear timeline for rate cuts led to a consolidation phase. Analysts believe that the Fed is unlikely to adopt a dovish stance in early 2025, which could result in Bitcoin trading within a narrow range.
Inflation data further complicates the situation, as progress in reducing inflation has been slow, and bond yields remain high. This persistent high-yield environment creates tighter liquidity conditions, counteracting efforts to lower refinancing rates. The Treasury’s forthcoming refunding announcement in February 2025 is expected to shed light on potential changes in U.S. debt strategies under the new administration.
The company is converting 7 billion smartphones into income-generating assets, offering the opportunity to invest $1,000 at just $0.26 per share.
The forthcoming Treasury Secretary’s potential move to reverse short-term debt reliance may introduce heightened volatility, causing concerns for Bitcoin traders. Market participants are closely monitoring inflation reports set for release on Jan. 15, Feb. 12, and beyond. These data will significantly impact expectations regarding Federal Reserve policy, a key determinant of Bitcoin’s performance. The report underscores the influence of external factors, indicating that Bitcoin’s trajectory increasingly aligns with macroeconomic trends.
“While maintaining a cautious stance, it is evident that the market’s favorable conditions may be waning,” the report concludes. Analysts acknowledge Bitcoin’s resilience but stress the possibility of increased volatility and extended consolidation as long as it remains above $95,000.
In related news, a new fund supported by Jeff Bezos is offering a target yield of 7-9% with monthly dividends – would you consider investing in it? Deloitte’s rapidly growing software company, “Scrolling To UBI,” enables users to earn money via their phones. Investing in this opportunity is possible for as little as $0.26 per share with a minimum investment of $1,000.
Enhance your stock market strategy with the indispensable tool known as Benzinga Pro – the ultimate “news & everything else” trading platform for active investors. Begin your 14-Day Trial today by clicking here! Stay updated on the latest stock analysis from Benzinga.
