The US Federal Reserve cut interest rates, bolstering recent global macroeconomic developments. As central banks are easing monetary policies, bullish end-of-the-year projections for Bitcoin are on the rise. Analysts are expecting Bitcoin to reach $160K in 2025.
This comes with several other developments, like the European Central Bank lowering its key interest rates by 25 basis points to 3% and The People’s Bank of China also cutting the benchmark one-year lending rate by 40 basis points to 5.6%.
Even the CME Fedwatch tool is expecting a December 0.25% interest rate cut, coming at 97.1% from 82.5%.
The continued global monetary policies’ easing seems to align with what the Maxiport report said recently. It was this report that predicted Bitcoin to reach $160K by the next year. In addition to this, the report also emphasizes sustained demand for Bitcoin, expanding global liquidity pool as well as the macroeconomic environment evolution as the leading factors.
The report has described this as a ‘critical adoption milestone,’ which it likens to the rapid adoption of social media and mobile phones.
Again, there is a Bitcoin ‘Santa rally’ sentiment in the crypto space, that might be driving the upticks in the Bitcoin price. Weeks leading up to Christmas and after are expected to result in significant price increase for the first-ever cryptocurrency, extensively benefiting those who own even a bit of the Bitcoin currency.
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