At the beginning of 2025, Bitcoin suffered significant losses, plunging to the $96K level, marking the biggest selloff of the year. Altcoins followed the trend, but major investors are stepping in to purchase during the dip.
The Real Reason Behind the Selloff
The crypto market is feeling pressure due to new U.S. economic data. Despite the economy's positive indicators, investments in risk assets like Bitcoin have weakened. The Federal Reserve is actively working to control inflation, and recent job openings data — the highest since June 2024 — have caused a rise in U.S. 10-year Treasury yields. This indicates that the Fed might not cut rates as expected, which has caused the crypto market to decline.
The Trump Effect: Not Exactly
Some attribute the selloff to Donald Trump's actions, fearing that he is shifting away from his pro-crypto stance. However, analysts argue the opposite. Trump's appointments promise support for digital assets and innovation, and there is optimism that he could position the U.S. as a global leader in crypto regulation, surpassing places like Dubai and Singapore.
Big Predictions for Bitcoin’s Future
Despite current challenges, the market remains optimistic. An increase in ETF inflows is expected, indicating a bright future for Bitcoin. Predictions suggest that Bitcoin's price could surpass $100,000 in 2025, possibly reaching $200,000. Some analysts have more conservative estimates ranging from $125K to $150K, with the risk that many investors might sell too early, missing out on long-term gains. Wall Street's involvement in Bitcoin and the growth of altcoins also promise significant development in the coming years.
With the changing political landscape, the market is set for substantial growth in 2025. Major players are buying during the dip, and the long-term outlook remains positive. This year could be pivotal for cryptocurrency gains.
