Bitcoin (BTC) faced a steep correction on Monday, Jan. 27, 2025. BTC has dipped below $100,000, and other assets are following suit. The asset is down 5.8% in the daily charts and 7.8% over the previous week. Despite the dip, BTC is up 6% in the 14-day charts, 4.9% over the previous month, and 137.1% since January 2025.

Bitcoin price chart
Source: CoinGecko

Also Read: Bitcoin At $98K: Why Is The Cryptocurrency Market Down Today?

Here’s Why The Cryptocurrency Market Could Be Down

crypto market crash
Source: Watcher Guru

The latest market dip is likely due to larger macroeconomic developments. The US dollar is gaining steam. Investors may have moved to safer assets, staying away from Bitcoin (BTC) and other cryptocurrencies.

Inflation in the US rose to 2.7% in December 2024. The Federal Reserve took a hawkish stance with its monetary policy to combat rising inflation. The Fed announced only two interest rate cuts in 2025 instead of three. The development may have led to lower inflows into BTC and other cryptocurrencies.

Also Read: Gold Drops 2% as Dollar Surges: Fed Rate Decision Shakes Markets!

Bitcoin To Hit A New All-Time High?

According to prominent cryptocurrency analyst, Ali Martinez, if BTC’s head-and-shoulders pattern fails, the asset could rise to a new all-time high of $122,000. Hitting $122,000 from current price levels will entail a rally of about 23%.

CoinCodex also presents a bullish outlook for Bitcoin (BTC). The platform anticipates the asset to continue rallying over the next few months. According to CoinCodex analysts, BTC could hit $151,748 on April 24, 2025. Hitting $151,748 from current price levels will translate to a rally of about 52.99%.

BTC price prediction
Source: CoinCodex

Also Read: Can Solana (SOL) Hit $400 In Q1 of 2025?

There is also a possibility that BTC will continue to dip. The macroeconomic developments could slow down investments in cryptocurrencies. How the original crypto moves over the next few weeks is yet to be seen.

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