Bitcoin Faces Potential Dip as Inflation Concerns Rise, Experts Predict Lower Prices
Bitcoin (BTC) is poised for further declines, according to recent analysis from Steno Research. As inflation concerns continue to loom, risky assets like Bitcoin may experience increased pressure. Since mid-December, Bitcoin’s price has fallen by approximately 10%, moving from all-time highs around $106,000 to current levels around $96,000. Steno Research predicts a potential drop to as low as $85,000 per coin if inflation remains unchecked.The report highlights that Bitcoin’s sell-off is largely driven by unfavorable macroeconomic conditions, with inflation once again taking center stage. The US Consumer Price Index (CPI) report due on January 15 could further impact Bitcoin’s performance, with expectations for monthly headline price increases of around 0.4%, slightly above consensus estimates.
US dollar strength, driven by more hawkish Federal Reserve policies and potential tariff threats, is also contributing to Bitcoin’s struggles. Lower interest rates typically benefit risky assets like Bitcoin, but current market sentiment remains cautious.
Despite these short-term challenges, Steno Research maintains an optimistic long-term outlook. They forecast that 2025 could be Bitcoin’s most significant year yet, with prices reaching unprecedented highs of around $150,000 per coin. This growth would be supported by favorable regulatory changes, declining interest rates, and strong post-Bitcoin-halving performance trends.
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