What happened?
Prominent macroeconomist Lyn Alden predicts that Bitcoin is likely to exceed $85,000 by the end of 2025. Despite the positive forecast, she notes that recent tariffs introduced in February have tempered her earlier bullish expectations. A surge in liquidity, potentially due to a U.S. bond market crisis, could push Bitcoin toward even higher targets.
Who does this affect?
This situation affects Bitcoin investors and traders who might be influenced by potential market volatility and price shifts. It also impacts policymakers and economic analysts who need to consider the consequences of tariffs and other macroeconomic factors on digital assets. Additionally, institutional investors and financial markets could see ramifications as Bitcoin’s performance becomes tied to broader economic trends.
Why does this matter?
The potential increase in Bitcoin’s price and market volatility may have significant impacts on global financial markets. As traditional equities face limited trading hours, Bitcoin’s 24/7 trading nature allows for prompt reactions to market jitters, affecting investor strategies. Furthermore, if a weak U.S. dollar cycle emerges akin to 2003-2007, Bitcoin could benefit more than U.S. equities, impacting capital allocation and investment patterns.