Bitcoin’s price has recently declined after reaching an all-time high of over $108,000 due to federal reserve policies, profit-taking, market volatility and reguatory developments. We take a look at why this has happened and if Bitcoin can get above $100,000 again in 2025.
Federal Reserve Policies:
The U.S. Federal Reserve’s recent interest rate cut of 25 basis points, coupled with a revised inflation outlook for 2025, has influenced investor sentiment. The Fed’s indication of fewer rate cuts than previously anticipated, along with an increased inflation forecast from 2.1% to 2.5%, has led to market uncertainty, affecting Bitcoin’s price.
Profit-Taking by Investors:
After Bitcoin surpassed the $100,000 milestone, many short-term investors have opted to realize profits, leading to increased selling pressure and a subsequent price decline.
Market Volatility and Speculation:
The cryptocurrency market is inherently volatile, with prices often influenced by speculative trading. Analysts have noted that Bitcoin’s rapid ascent may have been driven by speculative investments, which can lead to sharp corrections when market sentiment shifts.
Regulatory Developments:
Anticipation of regulatory changes under the incoming Trump administration has created uncertainty. While pro-crypto policies are expected, the specifics remain unclear, causing market participants to adopt a cautious stance.
Global Economic Factors:
Broader economic conditions, including concerns about inflation and potential geopolitical tensions, have impacted investor behavior across various asset classes, including cryptocurrencies.
These factors, among others, have collectively contributed to Bitcoin’s recent price decline in 2025.
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Can Bitcoin get above $100,000 in 2025?
For Bitcoin to rise above $100,000 again, it would require strong institutional adoption, including increased investments from major funds and the approval of Bitcoin spot ETFs to boost accessibility and demand. Positive regulatory developments, such as clear and supportive crypto regulations, would reduce uncertainty and attract broader participation.
Technological advancements, such as enhanced scalability and adoption of the Bitcoin Lightning Network, could improve usability and drive real-world adoption. Additionally, favourable macroeconomic conditions, like declining interest rates or a weaker U.S. dollar, could renew investor confidence in Bitcoin as a hedge against inflation and a long-term store of value.
With over 35 years of finance experience, Darren is a highly respected and knowledgeable industry expert. With an extensive career covering trading, sales, analytics and research, he has a vast knowledge covering every aspect of the financial markets.
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In addition to the financial analysis and commentary he provides as an editor at GoodMoneyGuide.com, his work has been featured in publications including Fool.co.uk.
As well as extensive experience of writing financial commentary, he previously worked as a Market Research & Client Relationships Manager at Admiral Markets UK Ltd, before providing expert insights as a market analyst at Pepperstone.
Darren is an expert in areas like currency, CFDs, equities and derivatives and has authored over 260 guides on GoodMoneyGuide.com.
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