Despite temporary setbacks due to macroeconomic data, Bitcoin maintains a structurally bullish forecast, says Grayscale's head of research Zach Pandl.
Macroeconomic Factors and Bitcoin Impact
On January 10, a positive US jobs report sent BTC's spot price tumbling below $93,000 as the US dollar strengthened amid expectations of slower rate cuts. Zach Pandl noted that the strength of the dollar, fueled by more hawkish Fed policy and the threat of tariffs, is applying temporary pressure on Bitcoin's price.
Positive Forecasts for Cryptocurrencies
Despite the current downturn, Zach Pandl maintains a positive outlook for crypto valuations. He believes the current setbacks may be short-lived with the upcoming US Presidential inauguration.
Future Regulatory Environment and Its Impact
With Donald Trump's victory in the US presidential elections, there is hope for a more favorable regulatory environment for the cryptocurrency industry, which in turn, could lead to a surge in institutional interest. This growth is expected to support institutional investments, potentially causing positive 'demand shocks' for Bitcoin in 2025, according to Sygnum Bank.
In conclusion, despite temporary macroeconomic challenges, Bitcoin continues to show long-term growth potential due to likely improvements in regulation and increased institutional interest.