Bitcoin (BTC) appears to have a promising future, with predictions that its price could rise to $160,000 by 2025. This expectation is based on favorable macroeconomic trends and an easing of global monetary policy, according to a report from crypto services provider Matrixport.
ECB and PBOC initiate interest rate cuts
The recent cut in interest rates by the European Central Bank (ECB) by 25 basis points to 3% marks an important step in stimulating investment and economic activity in the eurozone. At the same time, the Chinese Central Bank (PBOC) has cut interest rates for the first time in 14 years, signaling a global trend of easing, according to analysts such as Bitfinex’s Jag Kooner.
Kooner emphasizes that these types of interest rate cuts can stimulate capital flows into riskier assets such as Bitcoin. “This relaxation could fuel a ‘Santa rally’ with Bitcoin and other cryptocurrencies benefiting from rising investment,” he stated.
Matrixport: Demand for Bitcoin ETFs and Growing Liquidity as Driving Forces
According to Matrixport, not only the macroeconomic environment plays a role, but also the continued demand for Bitcoin ETFs. In a report published on December 13, the company predicts a 60% rise in Bitcoin by 2025, thanks in part to a growing global liquidity pool and wider adoption of crypto.
Matrixport stated: “Our projections show that Bitcoin could reach $160,000 by 2025. This objective is in line with growing demand for ETFs and an improving macroeconomic environment.”
US Federal Reserve and Impact on Bitcoin
All eyes are now on the upcoming decision of the US Federal Reserve on December 18. According to the CME FedWatch Tool, the probability of a rate cut has increased by 25 basis points to 96.7%. This could further support Bitcoin in reaching record prices by the end of 2024.
Lower interest rates lower the cost of borrowing and encourage risky investments, often leading to more capital flows into crypto. Kooner explained: “The psychological impact of loose monetary policy can significantly improve investor sentiment.”
Market deleveraging opens the way to the next rally
An important development in the crypto industry is the recent deleveraging of positions worth $1.7 billion. According to Kooner, this deleveraging creates a stable foundation for Bitcoin’s next price rally. He stated: “Removing excessive long positions opens the door to new upward movement.”
With these developments on the horizon, analysts remain optimistic about Bitcoin’s long-term prospects. While the future may be volatile, all indications are that 2025 will be a game-changing year for the world’s largest cryptocurrency.
Claim €10 free and have a chance to win €300 in Solana (SOL)!
Grab this unique opportunity with Newsbit and Bitvavo! Create an account now via the button below, deposit €10 and immediately receive €10 free. But that’s not all: by trading at least €200 between December 9 and 15, you automatically have a chance to win as much as €300 in Solana (SOL). This promotion is valid for both new and existing customers!
Claim your €10 free, have a chance to win €300 in Solana (SOL)
Don’t miss this opportunity to immediately benefit from the growing popularity of Crypto!
Source: https://newsbit.nl/bitcoin-naar-160k-in-2025-dankzij-betere-macro-economie/
