Bitcoin (BTC) ended 2024 on a high note, reaching impressive price levels above $100,000. As 2025 begins, forecasts remain optimistic, with predictions suggesting a potential climb to $185,000. Despite such hopeful projections, recent price movements have introduced uncertainty, challenging the market’s stability.
Why Did December See Bitcoin’s Sudden Decline?
In a surprising turn, Bitcoin reached an all-time high of $108,000 in December, only to close the month below $94,000. This decline marks the first monthly loss for Bitcoin since August. The notable price drop led to the formation of a “shooting star” candlestick, a pattern often interpreted as a sign of potential price decline.
How Are Economic Factors Impacting Bitcoin?
The shooting star pattern indicates a struggle between buyers and sellers, with sellers ultimately gaining the upper hand. Experts argue that Bitcoin must stay above its December low of $91,186 to prevent confirming a downward trend. Below this threshold, the bearish sentiment could intensify.
Current macroeconomic dynamics significantly affect Bitcoin’s immediate performance:
- Global economic uncertainties influence market behaviors.
- The Federal Reserve’s interest rate policies are under scrutiny.
- Increasing Treasury yields and a robust U.S. dollar pressure risk assets.
Long-term perspectives remain bright, with some experts, including crypto commentator Alex Kruger, suggesting a shift toward a more favorable policy stance from the Federal Reserve in the upcoming months. Kruger believes that February could witness strong performance for Bitcoin, hinting at a potential recovery stage.
