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BitcoinSistemi 2025-01-04 17:18:10

Bitcoin’s Rally Has Lost Momentum: What Will Happen Next? Analyst Commented

Bitcoin closed 2024 on a high, reaching a record $107,000 in mid-December before retreating to hover around $96,000 in early 2025. Despite this decline, BTC's remarkable rise over the past year has left many investors wondering what's next. BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw its most significant outflows since its launch on Thursday, with $333 million in outflows. Some attributed the outflows to tax-related adjustments or profit-taking, while others saw them as part of a broader pause in market momentum. “Crypto tends to move in momentum cycles, with periods of rapid growth followed by quieter phases,” Andy Baehr, Managing Director of Indices at CoinDesk, told Morning Brief. Noting Bitcoin’s performance in 2024, Baehr pointed to two key periods: an ETF-driven rally in the first quarter and another surge between September and December, driven by the Federal Reserve meetings and the US presidential election. Stating that it is important for crypto investors to think long-term, Baehr said, “We should be patient in the quiet times and excited in the big moments.” Related News: Bankrupt Cryptocurrency Whale Still Won't Give Up: It Increased its Position Even More As Bitcoin celebrates the 16th anniversary of the Genesis Block, Baehr noted that the asset class is still in its infancy compared to traditional financial instruments. Baehr highlighted four key areas driving its adoption momentum: Government Reserves – Governments that include Bitcoin in strategic reserves. Enterprise Use Cases – Increasing interest from large corporations. Institutional Investments – Gradual involvement of pension funds and insurance companies. Advisory and Personal Engagement – Wider education and adoption of financial advisory services. This adoption momentum is expected to support Bitcoin’s medium- to long-term price stability and gradually reduce its notorious volatility, Baehr said. Regulation remains a crucial factor for the crypto market. While Bitcoin itself operates under a relatively solid framework with futures, ETFs, and options, stablecoins are expected to gain significant traction this year. “If stablecoin legislation passes, these tokens will require blockchains to transact, further expanding the utility of platforms like Ethereum and other layer 1 solutions,” Baehr said. While Bitcoin’s momentum has slowed since December, the next rally could be just around the corner. “When the momentum returns, we are confident that this will be a broad rally in the crypto market,” Baehr said. *This is not investment advice. Continue Reading: Bitcoin’s Rally Has Lost Momentum: What Will Happen Next? Analyst Commented

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