Earlier, the head of derivatives at Bitfinex, Jag Kooner, revealed that “A Federal Reserve interest rate cut could help Bitcoin end the year at “record-breaking levels”. Crypto services provider Matrixport released a similar report just days earlier. They claimed that Bitcoin’s (BTC) value will soar to $160k by 2025, driven by favorable macroeconomic trends and easing global monetary policies.

On the 6th of December, Bitcoin surpassed the long-anticipated $100,000 milestone, reaching $101,092—a significant moment in cryptocurrency history. Contributing to Bitcoin’s bullish outlook, the European Central Bank (ECB) reduced its key interest rate by 25 basis points to 3% on December 12. The reduction is aimed to stimulate investment and economic growth. Similarly, the People’s Bank of China cut its benchmark one-year lending rate by 40 basis points to 5.6%. The marking signified China’s first rate cut in over two years amid a slowing economy.

Kooner highlighted the global trend of monetary easing as a potential catalyst for increased investment in riskier assets like Bitcoin.

“This dual easing could drive capital flows into risk-on markets, including crypto. Combined with the traditional December market optimism, this could spark a ‘Santa rally,’ pushing Bitcoin and other cryptocurrencies higher as investors allocate more capital to the space.”

However, the Federal Reserve’s upcoming monetary policy decision on December 18 may significantly influence Bitcoin’s trajectory. Looking ahead, Matrixport predicts BTC could exceed $160k in 2025.

“Our analysis suggests BTC could reach $160k by 2025, representing a 60% upside,” Matrixport noted in a December 13 post. “This projection is supported by sustained demand for Bitcoin ETFs, evolving macroeconomic conditions, and the growing global liquidity pool.”

We remain bullish, BTC to the moon!