TechFlow news — On January 7, Bitwise released its Bitcoin Macro Investor Report for January 2025, noting that in December 2024 the crypto market faced macro headwinds including profit-taking and reduced institutional exposure. A stronger U.S. dollar and Federal Reserve policy adjustments led to tighter financial conditions, yet Bitcoin continued to receive support from on-chain data.
Despite short-term risks, long-term bullish factors such as the Bitcoin halving and strategic accumulation are expected to drive significant price appreciation. Bitcoin is projected to outperform traditional assets in 2025 and beyond. Although the Fed cut rates by 25 basis points in its December meeting, it signaled higher-for-longer interest rates. Declining global liquidity and a stronger dollar have weighed on Bitcoin, whose performance remains correlated with traditional markets like the S&P 500.
On-chain, demand from ETFs, corporate treasuries, and retail investors has created a supply shortage of Bitcoin. While some on-chain activity has cooled, key metrics such as declining exchange balances and rising hash rate indicate strong market resilience.
