Yigit Taha OZTURK 
Bitcoin’s price could surge to $160,000 in 2025, supported by improving macroeconomic conditions and easing global monetary policies, according to a report by Matrixport.
Bitcoin surpassed $100,000 for the first time on December 6, marking a historic milestone. On December 12, the European Central Bank (ECB) lowered its key interest rate by 25 basis points to 3%, aiming to boost investment and economic activity in the region.
Jag Kooner, head of derivatives at Bitfinex, noted that the global trend of easing interest rates could drive investors towards risk-on assets like Bitcoin. He said, “This dual easing could spur capital flows into risk-on markets, including crypto.” Additionally, Kooner pointed out that the traditional optimism seen in December markets could fuel a potential “Santa rally,” boosting Bitcoin and other cryptocurrencies as investors allocate more capital into the space.
The People’s Bank of China (PBOC) also cut interest rates for the first time in 14 years, further supporting Bitcoin’s bullish outlook.
Matrixport‘s projections indicate that Bitcoin could reach $160,000 by 2025, representing a 60% upside. The report attributes this potential rise to sustained demand for Bitcoin ETFs, evolving macroeconomic conditions, and expanding global liquidity pools.
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Federal Reserve‘s decision on December 18 could play a crucial role in shaping Bitcoin’s price movement for the remainder of 2024. According to the CME FedWatch tool, there is a 96.7% chance of a 25 basis-point rate cut, up from 82.5% a month ago.
Kooner mentioned that an interest rate cut by the Federal Reserve could help Bitcoin finish the year at record-breaking levels, as lower rates typically reduce borrowing costs, encouraging risk-taking among investors.
On December 9, $1.7 billion worth of leveraged positions were removed from the market, setting the stage for the next Bitcoin rally. This deleveraging is expected to create a foundation for future gains in Bitcoin’s price.
Related: Kris Marszalek, CEO of Crypto.com, warned in November that the crypto market needed to undergo deleveraging before Bitcoin could surpass $100,000, nearly a month before it achieved that milestone.
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