As 2025 approaches, Bitcoin (CRYPTO:BTC) is amid a changing macroeconomic landscape, with diminishing tailwinds raising concerns about continued momentum, according to a report.
What happened: The Federal Reserve’s hawkish stance, coupled with broader macroeconomic headwinds, signals a year of heightened caution for traders and investors. 10x Research reported it on Friday.
“Some indicators we are monitoring indicate that the air is thinning,” the report warned.
This sentiment looms larger now as Bitcoin’s recent failed breakout threatens its bullish momentum.
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Traders are advised to remain vigilant as these technical signals highlight the increased risks to the cryptocurrency.
The situation highlights a broader story: Bitcoin’s ability to maintain its support level depends on external factors that may no longer be favorable.
One of the most notable concerns is the declining 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 increase has been modest and MicroStrategy’s stock price has largely stagnated.
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“Despite the massive $16 billion purchase, Bitcoin’s price gain of roughly 10% over this period raises questions about the strength of the broader market,” the report said.
This disparity suggests that even significant bullish catalysts may no longer be enough to drive the market higher.
Monetary policy also casts a long shadow over Bitcoin’s prospects for 2025.
The Federal Reserve’s decision to lift its commitment to rate hikes at the end of January 2024 initially led to a strong rally.
However, the lack of a clear timetable for interest rate cuts resulted in a six-month consolidation phase.
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Although Bitcoin rallied again in September following the Fed’s first rate cut, the December central bank meeting once again created uncertainty.
