As 2025 approaches, Bitcoin (CRYPTO:BTC) finds itself navigating a changing macroeconomic landscape, with increasingly fading tailwinds. Concerns about continued momentumAccording to a report.
What happened: the The Federal Reserve’s hawkish stancealong with broader macroeconomic headwinds, signal a year of extreme caution for traders and investors. 10x search Friday’s report said.
“Some of the indicators we are monitoring indicate that the air is becoming thinner,” the report warned.
These sentiments loom larger now, as Bitcoin’s recent failed wedge breakout puts its bullish momentum at risk.
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Traders are advised to remain vigilant as these technical signals highlight the growing risks of 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 surprising concerns is the diminishing effect Accurate strategy(NASDAQ:MSTR) Aggressive Bitcoin accumulation.
The company has spent $16 billion to acquire nearly 159,000 bitcoins since November.
While this announcement initially sparked optimism, Bitcoin’s price rise has been modest, and MicroStrategy’s stock price has been largely stagnant.
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“Despite the massive $16 billion purchase, Bitcoin’s nearly 10% rise over this period raises questions about the strength of the broader market,” the report notes.
This disparity suggests that even significant bullish catalysts may not be enough to push the market higher.
Monetary policy also casts a long shadow on Bitcoin’s 2025 outlook.
The Federal Reserve’s decision to cancel its commitment to raise interest rates in late January 2024 initially led to a strong rally.
However, the lack of a clear timetable for interest rate cuts led to a six-month consolidation phase.
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Although Bitcoin saw another rally in September after the Fed’s first interest rate cut, the central bank’s December meeting reignited uncertainty.
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