Bitcoin is poised for a potential surge toward $200,000 in 2025 as analysts speculate on the implications of upcoming U.S. inflation data. The December Consumer Price Index (CPI), expected to be released at 8:30 am ET on Wednesday, is projected to show a year-over-year increase of 2.9%. A lower or stabilizing inflation rate might lead the Federal Reserve to modify its current aggressive interest rate policy, fostering a risk-on environment favoring Bitcoin and other assets. The recent strength in the labor market complicates this outlook, as unexpected job gains may keep inflation above target levels, possibly delaying rate cuts. However, some analysts believe that the expected pro-crypto policies from the newly confirmed administration could spur immediate gains in Bitcoin. Furthermore, CryptoQuant's analysis suggests Bitcoin could rise significantly by year-end, supported by institutional investment and historical patterns. The narrative hinges on the CPI outcomes, with deviations from expectations likely to affect both the Fed’s rate path and Bitcoin's trajectory.

Source 🔗