Bitcoin, which saw a significant increase in 2024 due to factors such as the approval of spot Bitcoin ETFs and Donald Trump’s victory, is expected to continue rising in 2025.
However, Bitcoin may face new challenges as it remains below $100,000 in the early days of 2025.
At this point, research firm Bravo Research stated that the Bitcoin rally could lose momentum in early 2025.
Analysts noted in their recent report that the outflows of US spot Bitcoin ETFs were unfavorable for the bulls and stated that there is a risk of the BTC price dropping to $80,000.
Bravo Research analysts wrote that, apart from ETF outflows, the weak performance of US stock markets and the hawkish stance of the Federal Reserve negatively impacted BTC and put its parabolic rise at risk.
Analysts who analyzed the correlation between stocks and Bitcoin stated, “The current situation is the exact opposite of September 2024 when stocks reached new highs and Bitcoin struggled. In September 2024, Bitcoin caught up with stocks that peaked. But now we can see Bitcoin keeping pace with the weakness in stocks.”
Bravo Research analysts stated that the decline could continue to $80,000 and added that a potential drop to $80,000 presents an excellent buying opportunity for the next wave of increases.
Watch out for entries into spot Bitcoin ETFs!
Finally, analysts who expressed skepticism towards Bitcoin ETF flows argued that even a slight slowdown in ETF inflows could trigger further declines.
“Bitcoin ETFs currently hold 1.15 million Bitcoins and are still accumulating around 3,000 BTCs per day. At this rate, Bitcoin could rise by another 50% in 50 days, calculated the researchers.
However, even the slightest slowdown in ETF buying could trigger and deepen Bitcoin’s decline.”
Analysts cited March 2024 as an example in this regard and stated that even if ETF flows turn positive again, the price may not follow the same positive trend.
“For example, in March 2024, Bitcoin fell 30% despite ETFs still buying. Therefore, March 2024 was a great time to sell, despite Bitcoin ETFs still buying,” warned Bravo analysts, cautioning investors against ETF inflows.
*This is not investment advice.
