Bitcoin & Macro: Watch Out For a Fed Pivot

Uncertainty in US monetary policy

Last week we looked at how the stock market might drag down Bitcoin in 2025. As it turns out, this phenomenon could be compounded by another risk: monetary policy uncertainty.

The Federal Reserve no longer has a clear direction for 2025. This uncertainty isn't great for Bitcoin.

Let's discuss the nature of this uncertainty, why it exists, and how it affects Bitcoin's current and future trends.

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Bitcoin & Macro: Watch Out For a Fed Pivot

The Takeaway

Bitcoin's Q4 2024 momentum is fading as ETF flows decline sharply.

This weakness comes as the Fed signals fewer rate cuts for 2025, despite core inflation remaining stubbornly high.

With Bitcoin still closely tied to risk assets, this uncertain monetary policy environment poses a significant challenge for crypto markets in the near term.

The Q4 2024 Dynamic is Broken