Bitcoin, which experienced a significant surge in 2024 due to favorable factors such as the approval of spot Bitcoin ETFs and Donald Trump’s victory, is expected to continue its rise 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 has claimed that the momentum of the Bitcoin rally could weaken in early 2025.
Analysts, in their recent report, noted that the outflows from US spot Bitcoin ETFs were a negative factor for the bulls. They also stated that there is a risk of the BTC price dropping to $80,000.
The analysts at Bravo Research wrote that, in addition to the ETF outflows, the weak performance of the US stock markets and the hawkish stance of the Federal Reserve have had a negative impact on BTC, putting its parabolic rise at risk.
Analysts who evaluated the relationship between stocks and Bitcoin stated, “The current situation is the exact opposite of September 2024 when stocks were reaching new highs and Bitcoin was struggling. In September 2024, Bitcoin caught up with the peak of stocks. However, 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 possible 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 doubt about relying on 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 BTC per day. At this rate, Bitcoin could rise by another 50% in 50 days, according to the researchers’ calculations. 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 said that even if ETF flows turn positive again, the price may not show 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,” Bravo analysts warned investors against ETF inflows.
*This is not investment advice.