The end of 2025 could mark the start of a new cryptocurrency cycle as Bitcoin stabilizes following a 30% market decline. This stabilization is attributed to macroeconomic improvements and shifts in liquidity, with the Federal Reserve adopting a dovish policy, cutting rates to 3.75%-4.0% by October 2025. This move has reduced the opportunity cost of holding Bitcoin, enhancing risk appetite.
Global central banks, including the ECB and BoE, have also eased monetary policies, creating a synchronized stimulus environment. Additionally, the development of CBDCs and clearer regulatory frameworks, such as the Genius Act and stablecoin regulations in the U.S., are fostering institutional adoption. Despite short-term volatility, liquidity is showing signs of recovery, with political developments like Trump's cryptocurrency task force adding complexity to the market outlook.
End of 2025 May Signal New Cryptocurrency Cycle Amid Policy Shifts
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