Bitcoin’s price could 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) surpassed the $100,000 high for the first time on Dec. 6, in a long-awaited milestone for 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.
Jag Kooner, head of derivatives at Bitfinex, noted the global trend of easing interest rates could 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.”
Improving macroeconomic conditions could be a significant catalyst for Bitcoin price, considering this is the People’s Bank of China’s (PBOC) first interest rate cut in 14 years.
BTC/USD, 1-month chart. Source: Cointelegraph
However, the Federal Reserve’s incoming 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 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.”
Related: How $100K Bitcoin impacts the wealth gap in the digital age
Crypto market deleveraging complete for the next leg up — Bitfinex
Bitcoin investors eagerly await the United States Federal Reserve’s final monetary policy decision for 2024 on Dec. 18.
The odds of a 25 basis-point rate cut currently stand at 96.7%, up from 82.5% a month…
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