According to the latest report from Bitwise, titled “January 2025 Bitcoin Macro Investor Report,” the crypto market is anticipated to encounter macro challenges such as profit taking and diminished institutional exposure during December 2024. The report also suggests that the strengthening of the U.S. dollar and the Federal Reserve’s policy readjustments could result in tighter financial conditions. However, despite these short-term obstacles, bitcoin remains underpinned by robust on-chain data, which includes signs of continued market resilience.
Long-term positive aspects such as the forthcoming Bitcoin halving event and strategic reserve measures continue to support expectations of considerable price growth, surpassing traditional investments throughout 2025 and beyond. Interestingly, although the Federal Reserve lowered interest rates by 25 basis points during its recent meeting, indications suggest that future rate increases may exceed current expectations. Decreasing global liquidity coupled with a more potent U.S. dollar exert pressure on Bitcoin’s performance, which so far has followed trends observed in conventional markets like the S&P 500.
Nonetheless, developments within blockchains have established a significant bitcoin supply deficit through various channels including ETFs, corporate treasuries, and retail investment activity. While some on-chain operations have seen a decrease in momentum, other vital metrics – such as decreased exchange holdings and augmented mining power – signify an enduring level of market strength and potential for further growth.
Source: M.theblockbeats.info
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