Bitcoin to Face High Volatility in 2025

Experts have been vocal about Bitcoin’s potential journey in 2025 and stated that a highly volatile period is likely to occur. After peaking at over $106,000 in mid-December, this cryptocurrency has dropped to just over $96,000 in mid-January. At some points, its trading price even went under $90,000.

Macroeconomic Pressures Might Be Dragging Bitcoin Down

A report by Bitfinex Alpha stated that macroeconomic pressures might be the main reason why Bitcoin’s price is likely to go down. One of those is the recent news of the Justice Department greenlighting the liquidation of $6.5 billion worth of Bitcoin.

US Treasury yields are a driving force as well. Bitfinex Alpha’s analysts stated that the rise in Treasure yields means that the “opportunity cost of holding Bitcoin rises.” As such, some institutional investors are often thinking of transferring from investing in cryptocurrencies to investing “into safer, yield-generating assets.”

The 10-year Treasury yields have climbed to 4.9%, the highest in the past 14 months. The last time when it had a percentage close to this was in April. The yields climbed to 4.6% and Bitcoin rose to $73,000. After that, BTC didn’t reach that threshold in value for the next seven months.

Bitcoin Might Drop Below $90,000

One analyst who goes by the pseudonym ‘Dave the Wave’, stated that the current BTC pattern might be similar to the one from previous years. Dave the Wave highlighted a chart which concluded that BTC will likely drop to $82,000.

However, he noted that just before the dip occurs, Bitcoin might experience a 119% price surge. According to Dave the Wave, the peak is likely to occur mid-year.

These analytics might be the reason why industry giants such as MicroStrategy are purchasing vast amounts of BTC assets. At the start of 2025, MicroStrategy bought over 1,000 BTC. Less than two weeks after the purchase, the company acquired over 2,000 BTC more and increased its total holding to 450,000 BTC. Purchasing BTC while the coin is on a dip is a great way to increase future value.