Cryptocurrency Price Forecast for 2025: Highs, Lows and Key Trends to Watch

As the year draws to a close, the cryptocurrency market continues to be a hotbed of speculation and analysis, with forecasts for the future of Bitcoin and Ethereum fluctuating as wildly as the cryptocurrencies themselves. In November and December, after the US elections, there seemed to be an influx of price predictions, with some analysts setting their sights on a $125,000 level for Bitcoin at the end of 2024. However, others warned of potential pullbacks.

As of 2:10 PM EST on Monday, Bitcoin was trading at around $94,300 and Ethereum at around $3,400. This represents a significant decline in the value of both cryptocurrencies, with Bitcoin down approximately 12% since peaking above $108,000 on December 17. On the same day, Ethereum was trading above the $4,000 level but has since seen a 15% decline.

Matt Mina, a strategist at 21Shares, attributes this downward trend to the Fed’s hawkish stance ahead of 2025. Expectations of two interest rate cuts next year instead of three, according to Mina, have dampened market sentiment and contributed to Prices decline. For Bitcoin, Ethereum and other risky assets.

Furthermore, MENA points to a six-month high in the 10-year Treasury yield, making crypto assets less attractive as investors shift toward safer and more predictable returns. At the same time, some investors keep gains made throughout the year, while others use tax-loss harvesting strategies, selling assets that have declined in value to offset capital gains and lower taxable income.

Despite this, Mina and other analysts view this as a “healthy” correction, which is typical for Bitcoin after a significant price rise. If Bitcoin can maintain a level above $85,000, Mina believes it will maintain the upward trend seen in recent months. However, if it fails to do so, we may see an accelerated sell-off and further price decline.

“The next key psychological price level to watch is $110,000, and 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,” Mina noted.

Sergey Gorev, Head of Risk Management at YouHodler, expects the corrective sentiment in the cryptocurrency market to continue until 2025, and links this to the historical correlation between Bitcoin and the decline in the M2 money supply.

Meanwhile, Galaxy’s Alex Thorn expects Bitcoin to reach 20% of gold’s market cap in 2025, from its current level of just over 10%. Thorne expects Bitcoin to exceed $150,000 in the first half of the year, with a potential peak of $185,000 in the fourth quarter.

“A combination of institutional, corporate and state adoption will push Bitcoin to new heights in 2025,” Thorne wrote. “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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