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There has been no shortage of cryptocurrency prices Predictions This year, especially (apparently) in November and December after the election. And some were Looking forward $ 125,000 level for BTC at the end of 2024, while others warned of withdrawal.
Where we stood at 2:10 PM ET on Monday: BTC price around $94,300 and ETH price around $3,400.
Bitcoin is down nearly 12% since rising above $108,000 on December 17. Ethereum traded above the $4,000 level that day, but has fallen 15% since then.
Matt Mina, research strategist at 21Shares, attributed this in part to more hawkish sentiment from the Fed heading into 2025. Expectations of two interest rate cuts next year (instead of three) “have dampened market sentiment and are a major factor behind the recent decline in Bond prices. “BTC, ETH and other risky assets,” he said.
Mina also noted that a six-month high in the 10-year Treasury yield reduces the appeal of crypto assets, as investors shift toward safer, more predictable returns.
There are also those who are maintaining the gains made throughout the year, Mina said. Meanwhile, others use tax loss harvesting strategies - selling assets that have declined in value to offset capital gains and reduce taxable taxes. income.
He and other analysts have described this as a “healthy” correction, which is typical for Bitcoin after a significant bull run. If BTC can stay above $85,000, the 21Shares CEO told me he believes it will maintain the uptrend seen in recent months. Otherwise, we may see an acceleration in selling and a further decline in prices.
“The next key psychological price level to watch is $110,000,” Mina added. “Once Bitcoin breaks this resistance, we could see a rapid rally to $120,000, with the potential to target $150,000 by summer as momentum builds.”
Sergey Gorev, Head of Risk at YouHodler, expects the corrective sentiment in the cryptocurrency market to continue into 2025. He pointed to the historical relationship between BTC and the decline in M2 money supply as a key factor.
But Galaxy's Alex Thorn wrote in a research note on Friday that he expects BTC to eventually reach 20% of gold's market cap in 2025 (it's currently just over 10%).
Thorne believes Bitcoin will surpass $150,000 in the first half of the year — as well as a “test or better” of $185,000 in the fourth quarter. Big company and Adoption of the nation state “It will push Bitcoin to new heights in 2025,” wrote the head of Galaxy Research. “Throughout its existence, Bitcoin has appreciated faster than all other asset classes, especially the S&P 500 and gold, and this trend will continue in 2025.”
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