Bitcoin (BTC) Remains the Center of Investors’ Attention and Concern

Bitcoin (BTC) price action remains In focus especially following the latest nonfarm payrolls data from the US Bureau Of Labor Statistics (BLS). While the general market sentiment remains bullish, recent developments In the US economy Indicate that macroeconomic factors may be against the premier cryptocurrency In 2025.

Bitcoin price action sees another loss, bullish outlook remains

Bitcoin price trades above $94,000 on the daily chart. Following a 3.45% loss In the past seven days, the premier cryptocurrency opened the past week with a loss of 9% on December 14.

In an X post on December 10, market experts at global capital market analysis firm The Kobeissi Letter dissected the employment situation summary for December 2024.

According to the BLS, nonfarm payrolls employment rose by 256,000 Jobs In this month, adding 100,000 Jobs to the widely predicted figures. Following this report, The Kobeissi Letter analysts highlight that the US economy has gained an average of 165,000 Jobs since July, representing the highest 6-month average since July 2024.

Considering the US Federal Reserve began Implementing Interest rate cuts from September 2024, citing then a reduction In Jobs growth and Inflation, the analysts at The Kobeissi Letter stated the Apex Bank’s approach may have been misguided In light of the recent developments.

Therefore, the Fed Is expected to halt Interest rate cuts to battle an expected heightened Inflation due to a strong Jobs data, with the potential of even adopting rate hikes.

Generally, an absence of rate cuts or Introduction of rate hikes Is negative for Bitcoin as lower Interest rates afford Investors the capacity to deal In risky assets such as cryptocurrencies. Following the Fed’s previous announcement of potential reduced rate cuts In 2025, Bitcoin experienced a flash crash of over 9% mid-December as Investors moved to close their volatile positions In all financial markets.

Currently, The Kobeissi Letter forecasts that the Fed’s pivot to rate cuts Is likely over, with a 44% probability that there will be no rate cuts through June 2025.

Bitcoin price faces bullish signals from Investors, Institutions

Despite the macroeconomic outlook, other factors are expected to keep Bitcoin Investors bullish In 2025. Notably among these factors Is the historical price action of the premier cryptocurrency In a bull cycle.

Bitcoin began 2024 trading at $46,000 and reached all-time highs above $130,000 by March. In the second half of the year, BTC price action faced a correction to lows of $92,000 before recovering to close the year above $100,000.

With the recent bullish momentum and a bull cycle that Is expected to continue till 2026, Bitcoin Investors are likely to remain optimistic about the premier cryptocurrency.

Furthermore, the US government has shown support for cryptocurrency regulation In 2024, and this Is expected to continue In 2025. Pro-crypto legislation and policies are likely to boost the adoption and demand for Bitcoin and other digital assets.

Lastly, Institutional Investors are expected to continue their entry Into the cryptocurrency market via spot ETFs and other avenues In 2025. This Is likely to drive demand for Bitcoin and other large-cap cryptocurrencies.

At the time of writing, Bitcoin price Is ranked eighth among world assets and the largest cryptocurrency with a market cap of $1.84 trillion.