At the start of the second quarter of 2025, Bitcoin's price shows mixed signals: a clash between short-term holders and long-term investors, along with the impact of new US economic measures.
Current Market Situation
March ended in an indecisive manner for Bitcoin, influenced by conflicts between short-term and long-term investors. The introduction of reciprocal US tariffs generated mixed reactions among global investors worried about a potential US recession. As the second quarter of 2025 begins, much attention has shifted to a predicted correlation between Bitcoin and Gold. While Gold has shown tangible gains since December, Bitcoin and the broader altcoin market have been stuck in bearish sentiment.
Is the Rally Over or Just a Pause?
Quinn Thompson, founder of crypto hedge fund Lekker Capital, predicts a potential correction in Bitcoin's price below $60k. According to him, the recent announcement from the White House on establishing a strategic BTC reserve and regulatory measures from Congress is a sell-the-news event.
Long-Term Forecasts and Fundamental Factors
Technical analysis suggests a potential parabolic rally before the end of this year, despite diminishing returns for Bitcoin over the years. Bitcoin’s monthly RSI has not reached 90 as seen during previous bullish markets. Long-term investors, led by Strategy, continue to accumulate Bitcoin as a hedge against inflation and market uncertainty.
The future of Bitcoin's price in 2025 remains uncertain. Opinions vary between potential bearish trends and the possibility of a new rally.
