As 2025 approaches, Bitcoin (CRYPTO: BTC) finds itself navigating a shifting macroeconomic landscape, with fading tailwinds raising concerns about sustained momentum, according to a report.
What Happened: The Federal Reserve’s hawkish stance, coupled with broader macroeconomic headwinds, suggests a year of heightened caution for traders and investors, 10x Research report on Friday stated.
“Some indicators we monitor suggest that the air is getting thinner,” the report cautioned.
This sentiment now looms larger, with Bitcoin‘s recent failed wedge breakout putting its bullish momentum in jeopardy.
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Traders are advised to remain vigilant as these technical signals highlight increased risks for the cryptocurrency.
The situation highlights a broader narrative: Bitcoin’s ability to maintain its support level depends on external factors that may no longer be favorable.
One of the more striking concerns is the diminishing impact of MicroStrategy‘s (NASDAQ:MSTR) aggressive Bitcoin accumulation.
The company has spent $16 billion acquiring approximately 159,000 BTC since November.
While this announcement initially sparked optimism, Bitcoin’s price appreciation has been modest, and MicroStrategy’s share price has largely stagnated.
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“Despite the massive $16 billion purchase, Bitcoin’s price gain of roughly 10% during this period raises questions about the broader market’s strength,” the report notes.
This disparity suggests that even significant bullish catalysts might no longer be enough to drive the market higher.
Monetary policy also casts a long shadow over Bitcoin’s 2025 outlook.
The Federal Reserve’s decision to remove its commitment to rate hikes in late January 2024 initially led to a strong rally.
However, the lack of a clear timeline for rate cuts resulted in a six-month consolidation phase.
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Although Bitcoin experienced another rally in September following the Fed’s first rate cut, the central bank’s December meeting reintroduced uncertainty.