Zach Pandl, the research chief at Grayscale, recently shared insights with Cointelegraph regarding Bitcoin’s future.
Despite encountering some short-term obstacles tied to broader economic trends, he remains optimistic about Bitcoin’s long-term potential.
Market Influences on Bitcoin
After a positive jobs report on January 10, Bitcoin’s price dipped below $93,000, influenced by a strengthened US dollar.
This rise in the dollar stemmed from a more aggressive stance by the Federal Reserve and speculation about possible tariff increases.
Pandl explained that the solid employment numbers have reduced the chances of interest rate cuts, further bolstering the dollar and potentially dragging down Bitcoin’s value in the near term.
As per the CME FedWatch Tool, the futures market currently assesses the likelihood of a rate cut in January as being under 3%.
Additionally, the US Dollar Index (DXY) saw an increase of about 0.5% during morning trading.
Pandl believes, however, that the upcoming US presidential inauguration may provide a short respite from these recent declines.
He holds a positive long-term view on cryptocurrency valuations, suggesting that the political landscape could be pivotal.
Political Landscape and Regulatory Changes
With the election of former President Donald Trump on November 5, 2024, expectations are high that he will install industry-friendly officials in key regulatory positions, transforming the US into a leading hub for cryptocurrency when he takes office on January 20.
Grayscale is also adapting to these shifting dynamics, as evidenced by its updated watchlist of major tokens for 2025, reflecting the potential effects of the upcoming election on regulatory policies.
Future Prospects for Bitcoin
Looking further ahead, Steno Research predicts that 2025 will usher in exceptional performance for cryptocurrencies.
They foresee Bitcoin reaching unprecedented heights, driven by a regulatory environment that favors increased institutional adoption.
Recent data from Bloomberg Intelligence highlights a significant milestone, noting that US Bitcoin exchange-traded funds (ETFs) surpassed $100 billion in net assets for the first time in November.
Steno Research anticipates an additional influx of around $48 billion into Bitcoin ETFs throughout 2025.
According to Sygnum Bank, the recent surge in institutional investments might create substantial “demand shocks” for Bitcoin, potentially driving its price to new all-time highs in 2025.
Source: Cointelegraph
