Paul Atkins

Bank

bullish

Bitcoin

Propel

Bitcoin’s price may surge to $160,000 in 2025, bolstered by improving macroeconomic conditions and easing global monetary policies, according to a report from crypto services provider Matrixport.
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) surpassed the $100,000 high for the first time on Dec. 6, in a long-awaited milestone <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-ftx-collapse-regulatory-evolution" rel="null" target="null" text="null" title="https://cointelegraph.com/news/crypto-ftx-collapse-regulatory-evolution">in crypto history</a>.
In a bullish signal for the Bitcoin price, the European Central Bank (ECB) lowered its key interest rates by 25 basis points to 3% on Dec. 12 in an effort to increase investment and economic activity in the region. 
The People’s Bank of China also decided to cut its benchmark one-year lending rate by 40 basis points to 5.6 % on Nov. 21. It is the first rate cut in more than two years, as the economy has slowed. 
Jag Kooner, head of derivatives at Bitfinex, noted the global trend of easing interest rates may drive investors toward risk-on assets like Bitcoin:
<blockquote>
 “This dual easing could spur capital flows into risk-on markets, including crypto. Combined with the traditional optimism seen in December markets, this may fuel a potential “Santa rally,” driving Bitcoin and other cryptocurrencies higher as investors allocate more capital into the space.
</blockquote>
<figure>
 <img alt="Bitcoin could hit $160K in 2025, fueled by improving macro conditions" src="https://s3.cointelegraph.com/uploads/2024-12/0193bfb0-30ca-7d57-ae81-b369c38218ff" title="">
 <figcaption style="text-align: center;">
 BTC/USD, 1-month chart. Source: Cointelegraph
 </figcaption>
</figure>
However, the Federal Reserve’s forthcoming monetary decision on Dec. 18 could significantly impact Bitcoin’s price trajectory until the end of 2024.
<figure>
 <img alt="Bitcoin could hit $160K in 2025, fueled by improving macro conditions" src="https://s3.cointelegraph.com/uploads/2024-12/0193bfb4-8507-785f-9d09-cfe6bbab8ea5" title="">
 <figcaption style="text-align: center;">
 Bitcoin to $160,000 by 2025. Source: Matrixport
 </figcaption>
</figure>
This dynamic could bolster Bitcoin’s price to over $160,000 in 2025, according to a report shared by Matrixport in a Dec. 13 X <a data-ct-non-breakable="null" href="https://x.com/Matrixport_EN/status/1867480829188092021/photo/1" rel="null" target="null" text="null" title="null">post</a>. Matrixport stated:
<blockquote>
 “Our projections indicate that Bitcoin could reach $160,000 in 2025, representing a +60% upside. This target aligns with the sustained demand for Bitcoin ETFs, the evolution of the macroeconomic environment and the expanding global liquidity pool.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/100k-bitcoin-impacts-wealth-gap-digital-age" rel="null" target="null" text="null" title="null">How $100K Bitcoin impacts the wealth gap in the digital age</a>
<h2 id="crypto-market-deleveraging-complete-for-the-next-leg-up-bitfinex">Crypto market deleveraging complete for the next leg up — Bitfinex</h2>
Bitcoin investors eagerly await the United States Federal Reserve’s final monetary policy decision for 2024 on Dec. 18.
The odds of a 25 basis-point rate cut currently <a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="null" target="null" text="null" title="null">stand</a> at 96.7%, up from 82.5% a month ago, according to the latest data from the CME FedWatch tool.
<figure>
 <img alt="Bitcoin could hit $160K in 2025, fueled by improving macro conditions" src="https://s3.cointelegraph.com/uploads/2024-12/0193bfaf-2172-77e6-9e01-958478768ee4" title="">
 <figcaption style="text-align: center;">
 Interest rate cut predictions. Source: CME FedWatch tool
 </figcaption>
</figure>
An interest rate cut by the Fed would help Bitcoin finish the year at “record-breaking levels,” Kooner said. “Lower interest rates typically reduce borrowing costs, encouraging greater risk-taking among investors. Cryptocurrencies, as high-risk assets, often see inflows during such periods of increased liquidity. Additionally, the psychological boost from a dovish monetary stance can improve investor sentiment,” he added.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-record-40-monthly-candle-crosses-99-k" rel="null" target="null" text="null" title="null">Bitcoin prints record 40% monthly candle as price crosses $99K</a>
Bitcoin’s price is poised for further gains following a $1.7 billion reduction in leveraged trading positions on Dec. 9. Kooner said this deleveraging sets the stage for the next market rally, adding, “Excessive leveraged long positioning has been removed, creating a foundation for the next leg up in Bitcoin’s price.”
In crypto trading, leverage refers to the amount of borrowed funds used for trading positions.
On Nov. 12, Kris Marszalek, the co-founder and CEO of Crypto.com, warned that the crypto market will <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-market-enters-extreme-greed-needs-deleveraging-before-100k-btc" rel="null" target="null" text="null" title="null">need deleveraging before Bitcoin</a> can breach $100,000 — nearly a month before BTC crossed the six-figure price tag for the first time.<iframe width="100%" height="315" src="https://www.youtube.com/embed/ddVTOZ5kqt4" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: YouTube
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-price-100k-donald-trump-paul-atkins-sec-gary-gensler-hodlers-digest/" rel="null" target="null" text="null" title="null">BTC hits $100K, Trump taps Paul Atkins for SEC chair, and more: Hodler’s&nbsp; Digest, Dec. 1 – 7</a>

Bitcoin could hit $160K in 2025, fueled by improving macro conditions

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