Bitwise: Short-term risks and on-chain benefits coexist, Bitcoin may outperform traditional assets in 2025

Bitwise released a Bitcoin Macro Investor Report for January 2025, pointing out that the crypto market faces macroeconomic headwinds, including profit-taking, reduced institutional exposure, and a tightening financial environment driven by the appreciation of the US dollar and the Fed's policy adjustments, which still puts pressure on Bitcoin and altcoins despite continued on-chain support. Although short-term risks remain, long-term bullish factors such as Bitcoin halving and potential strategic reserves support predictions of significant price increases, and Bitcoin is expected to outperform traditional assets in 2025 and beyond. Although the Federal Reserve cut interest rates by 25 basis points at its December meeting, it hinted that future interest rates will be higher than expected. Declining global liquidity and a stronger US dollar put pressure on Bitcoin, and its performance remains linked to traditional markets such as the S&P 500. On the chain, although some activities have cooled, key indicators such as reduced exchange balances and rising hash rates indicate that Bitcoin will continue to remain resilient. (etc-group)