It seemed that there were many crypto-price predictions in 2018, especially after the November/December election. Many were looking at $125,000 for BTC by 2024. However, others warned of a possible pullback.
BTC is at approximately $94,300, while ETH is at approximately $3400.
Bitcoin’s price has fallen by about 12% in the last few days since it surpassed $108,000 back on December 17. Ether had risen above $4,000 that day. However, it has since fallen by 15%.
Matt Mena, a research analyst at 21Shares Research, attributed it in part to Fed’s more hawkish outlook heading into 2025. Forecast of only two rate reductions next year, instead of three “dampened market sentiment and is a key factor behind the recent downturn in prices for BTC, ETH and other risk assets,” He argued.
Mena has also stated that the 6-month-high in 10-year Treasury yields further reduces the appeal for crypto assets as investors move towards safer and predictable returns.
Mena explained that some people lock in their gains for the entire year. At the same time, others are employing tax-loss harvesting strategies — selling assets that have declined in value to offset capital gains and reduce taxable income.
The analyst and I have both called it a “healthy” A correction is typical of bitcoin following a major run-up. The 21Shares executive told me that if BTC stays above $85,000 it is likely to continue the upward trend seen over the past few months. We could also see further declines in price and accelerated sales.
“The next major psychological price level to watch is $110,000,” Mena is added. “Once bitcoin breaks through this resistance, we could see a swift surge to $120,000, with the potential to target $150,000 by the summer as momentum builds.”
Sergei Gorev (head of risk at YouHodler) predicts that corrective sentiments in the crypto markets will persist until 2025. The historical correlation between BTC’s declining money supply and BTC was cited as the key factor.
Galaxy’s Alex Thorn, in a research note published on Friday, wrote that he expected BTC’s value to reach 20 percent of the gold market cap in 2025. (It’s slightly higher than 10 percent at present).
Thorn thinks BTC will cross $150,000 in the year’s first half — as well as a “test or best” In Q4, $185,000 was earned.”A combination of institutional, corporate and nation state adoption will propel bitcoin to new heights in 2025,” The Galaxy Research head has written. “Throughout its existence, bitcoin has appreciated faster than all other asset classes, particularly the S&P 500 and gold, and that trend will continue in 2025.”
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