2025 Bitcoin Market Outlook: Interest Rate Outlook Clouds Future Prospects
Early this week, Bitcoin jumped beyond $100,000, but as investors reevaluate this year’s interest rate outlook, the price has fallen in subsequent days. Stronger-than-expected economic data has caused Treasury yields to rise, which has put downward pressure on riskier assets like bitcoin as investors worry that the Fed may not lower interest rates again. As a result, the cryptocurrency has lost momentum. Interestingly, Wednesday saw the second-largest daily outflow from spot Bitcoin ETFs since they started trading in January of last year, suggesting institutional investors are wary of the asset class.
Bitcoin Slides Below $100K as Bearish Signals Emerge
Over the past year, Bitcoin has more than doubled in value. Since November’s election, the cryptocurrency has increased by almost 33% as investors hope that a more favorable regulatory environment will be paved by the new Trump administration and a Congress that is supportive of cryptocurrencies. Late Thursday saw Bitcoin trading around $93,500, down a little from the previous day and much below Monday’s weekly high of almost $103,000. In mid-December, the cryptocurrency reached its highest point ever, at over $108,000.
There has been a lot of selling pressure on Bitcoin’s price since it reached its all-time high (ATH). More recently, the price of the cryptocurrency stopped last week’s surge back over the highly anticipated $100K mark by forming a bearish engulfing pattern. Furthermore, the price has sharply declined below the reputable 50-day moving average (MA), and the relative strength index (RSI) has slipped below the 50 barrier, all of which indicate waning buying enthusiasm.
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