There are three factors that could prevent Bitcoin from reaching a new all-time high in 2025. Binance founder CZ says Bitcoin could reach $500,000 to $1 million this cycle. Florida takes Bitcoin strategic reserve bills off the table. Standard Chartered says BNB price could reach $2,775 in 2028, a gain of over 360%. Here's how XRP outperformed Bitcoin and Ethereum in Q1 2025. 88% of Bitcoin supply is in profit. Glass Node signals strong market support.
Three factors that could prevent Bitcoin from reaching a new all-time high in 2025
Despite the optimism surrounding Bitcoin, economist Timothy Peterson warns that there are three key risks that could slow its rise to a new all-time high this year. First, negative market sentiment. Recent indicators show a deterioration in consumer and investor confidence. The University of Michigan's consumer sentiment survey is declining. The American Association of Individual Investors survey reflects only 20% optimism versus 60% pessimism. NaM's equity exposure ratio sits at 60%, below the 80% typical in bull markets. This pessimistic environment could limit the flow of capital into risky assets like Bitcoin.
Second Federal Reserve Monetary Policy The market has anticipated approximately three rate cuts by the Federal Reserve for the remainder of 2025. However, if these cuts do not materialize, the narrative of abundant liquidity could fade, negatively impacting speculative assets like Bitcoin.
The next Fed meeting is scheduled for May 7.
Third, unforeseen macroeconomic risks: Unexpected events such as natural disasters, cyberattacks on financial infrastructure, or geopolitical conflicts can trigger massive market sell-offs. In such scenarios, Bitcoin, being a high-beta asset, could experience abrupt declines due to its sensitivity to liquidity and risk appetite. Despite these challenges, Bitcoin has remained in a lateral range in recent weeks, fluctuating between 93,000 and 97,000. The market is closely watching the evolution of these factors to determine whether Bitcoin can surpass its previous all-time high.