According to Grayscale’s chief researcher, Zach Pandl, the long-term view for Bitcoin (BTC) remains optimistic, even with temporary challenges arising from broader economic statistics. In simpler terms, despite some short-term obstacles caused by macroeconomic data, the overall trend for Bitcoin is expected to be positive.
On January 10th, a favorable U.S. employment report triggered a drop in Bitcoin’s current value to under $93,000, as the U.S. dollar climbed due to anticipation of less frequent interest rate reductions.
It appears that the value of Bitcoin is being affected because the US dollar is getting stronger. This increase in the dollar’s strength can be attributed to a more aggressive monetary policy from the Federal Reserve and the possibility of tariffs.
“Today’s strong jobs report reduces the chances of Fed rate cuts, further supports the dollar, and may weigh on the price of Bitcoin temporarily.”
Current predictions from futures markets suggest that there’s a minimal chance, under 3%, of an interest rate reduction in January as per the data from CME FedWatch. Consequently, the U.S. Dollar Index (DXY) experienced a growth of almost 0.5% during early market hours.
With the [US Presidential] inauguration happening soon, this issue might not last long, according to Pandl. He remains optimistic about the future of cryptocurrency values, seeing a fundamentally positive trend.
‘Structurally bullish outlook’
On November 5th, Donald Trump emerged victorious in the United States Presidential Elections. Trump intends to fill crucial regulatory agencies with individuals favorable to industry, aiming to establish the U.S. as a global leader in cryptocurrency. He is set to assume office on January 20th.
In December, Grayscale revised its list of key tokens to monitor in 2025, taking into account developments such as the U.S. election and its possible impact on regulatory frameworks within the industry.
In the meantime, Steno Research foresees 2025 as a record-breaking year for cryptocurrency, with Bitcoin surpassing its previous peak values due to an exceptionally advantageous regulatory climate that boosts institutional investment to unmatched degrees.
As a researcher, I recently observed an exciting milestone in the world of cryptocurrency – U.S.-based Bitcoin Exchange-Traded Funds (ETFs) surpassed $100 billion in net assets for the first time in November, based on data from Bloomberg Intelligence.
Steno expects Bitcoin ETFs to see additional net inflows of $48 billion in 2025.
Increased institutional investments in Bitcoin might trigger “supply-side surprises” or strong increases in demand for Bitcoin, according to Sygnum Bank’s predictions made in December, which could lead to a significant rise in BTC’s value by 2025.
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2025-01-10 22:04