Bitcoin Bears Face 'Thin Air': Analyst Predicts New ATH by Q1 End Amid Favorable Macro-Environment
According to a crypto analyst, the favorable macro - environment leaves little room for doubt that Bitcoin is on its way to reaching new highs by the end of Q1 2025, making the situation very challenging for Bitcoin bears at the moment.
A crypto analyst has pointed out that Bitcoin bears may find it increasingly difficult to maintain confidence in a near - term price dip. The pro - crypto macro environment is seen as a strong signal that new all - time highs are likely to be achieved by the end of March.
"The air is getting very thin for bears right now. We expect Bitcoin to hit fresh highs by the end of the quarter," Pav Hundal, the lead analyst at crypto exchange Swyftx, told Cointelegraph.
Volatility Levels Return to the US Election Period
Hundal highlighted that the Bitcoin market has returned to the volatility levels last observed in November, around the time of the US election and prior to the "initial euphoria" that followed Donald Trump's victory as President on Nov. 5.
After Trump's victory, Bitcoin experienced a month - long rally. It surpassed its previous all - time high of $73,679 and reached the psychologically significant $100,000 level by Dec. 5.
As per CoinMarketCap data, at the time of publication, Bitcoin is trading at $102,470.
"Volatility has just run out of puff, and in the short term, that could spell danger for speculators," Hundal stated.
"We're in the neighborhood where volatility looks ready to kick higher, and that's important because it could be deadly for both sides of the market," he added.
Before the US election results were announced, trader uncertainty led to significant liquidations. On Nov. 4, the day before Trump's victory was confirmed, crypto market liquidations nearly reached $350 million as Bitcoin briefly dropped below $69,000, with Trump's odds of winning on Polymarket narrowing.
However, Hundal said the crypto market is on the verge of entering "the most accommodative era of policy making in the history of crypto, and apathy is taking over."
Crypto Commentators Divided on Bitcoin’s Q1 Performance
He mentioned that he has never seen "such a mismatch" between the macro conditions in the crypto space and investor sentiment.
On Dec. 14, asset management firm VanEck predicted that Bitcoin would reach a medium - term peak in Q1 and hit new highs by Q4 2025.
Meanwhile, other crypto commentators have differing views on where Bitcoin's price is headed in Q1.
BitMEX co - founder Arthur Hayes predicts that Bitcoin could potentially pull back towards the $70,000 to $75,000 range, a move that may trigger a "mini financial crisis."
However, Dr. Sean Dawson, the head of research at Derive, recently stated that Bitcoin has less than a 10% chance of dropping to the $75,000 level in Q1.