Bitcoin (BTC) Holders Should Brace for More Selloffs as Rising US Inflation Creates an Increasingly Unfavorable Macroeconomic Backdrop, Steno Research Says

Since mid-December, Bitcoin’s spot price has declined roughly 10%, dropping from all-time highs of around $106,000 to around $96,000 as of Jan. 14.

Steno Research highlighted an unfolding sell-off in Bitcoin (BTC) that might drive the cryptocurrency as low as $85,000.

The worsening macroeconomic climate is largely driving the sell-off, with inflation once again taking center stage.

Bitcoin's spot price has declined roughly 10% since mid-December, dropping from all-time highs of around $106,000 to around $96,000 as of Jan. 14.

A positive US jobs report on Jan. 10 saw BTC’s spot price briefly drop below $93,000, with the US dollar rising on expectations of slower interest rate cuts.

Steno expects the US Consumer Price Index report on Jan. 15 to flag higher-than-expected inflation, with monthly headline price rises of around 0.4% versus consensus expectations of 0.3%.

If this scenario plays out, Steno anticipates that markets will be caught off guard by an upside surprise, putting further downward pressure on digital asset prices.

In this scenario, Steno researchers estimate that Bitcoin could drop as low as $85,000 per coin.

However, Steno expects 2025 to be the crypto market’s best year ever, with Bitcoin smashing all-time highs. Steno anticipates that BTC will eventually hit $150,000 per coin in 2025.

This scenario is supported by several factors, including an unprecedentedly favorable regulatory environment for cryptocurrencies, a supportive macroeconomic climate and the historically strong post-Bitcoin-halving performance, Steno said.