The digital asset market is experiencing moments of uncertainty. Bitcoin (BTC), the sector’s flagship currency, will not be able to take off in 2025 despite an avalanche of news that portrays an encouraging future.
However, one of the world’s major exchanges, Coinbase, begins to make predictions that shake up expectations. BTC marks a new maximum this year.
According to reports presented by the company, the key is Market liquidity is backa factor that will allow digital assets to rise in the next few months.
Markets for “tension and transition”
The Coinbase report describes the current panorama as a state of “tension and transition.” The sector celebrates US regulatory advances — the possibility of abolishing Human Resources Accounting Breaking News (SAB) 121, withdrawing SEC requests from sectors such as Coinbase, and approval of the Genius Act on subscription coins for the summer of 2025. The impulses of these events will not be translated into lasting benefits.
“The regulatory headlines have been advantageous, but many market players feel that certain catalysts for Bitcoin and cryptocurrency are stagnating,” the exchange says.
In this regard, Macroeconomic factors are prominentaligns digital assets behavior with risks of US income risk.
This adds the order of economic expectations. The fear of a slowdown in the US, which was exacerbated by the Trump administration’s policies, like the tariffs imposed on Mexico, Canada and China on March 4th, created turbulence.
Some taxes have been postponed until April. Markets already feel the impact divided by inflation risk As reported by Cryptootics, the shadow of the recession.
In this regard, Coinbase points out that recent performance of both traditional risk assets and cryptocurrencies indicates that confidence in the positive perspective for the first quarter 2025 is clearly incorrect.
Fluidity as an engine of change
Coinbase refers to liquidity, an important factor. After a significant decline in the second semester of 2024, when the Federal Reserve balance was reduced by more than $500 million, the cash levels available in the financial system began to recover.
Between the second half of 2024 and March 2025, the decline in general American treasure account balances increased from 745,000 million to $500,000 million, while liquidity exceeded $6 billion.
“Liquidity is back in the market, which will raise the price of digital assets,” the exchange said.
Additionally, the Federal Reserve can suspend quantitative adjustments at the Federal Open Market Committee meetings on March 18th and 19th.
This scenario It is strengthened along with forecasts for interest rate reductions in 2025. A useful measure for the prices of Bitcoin and other cryptocurrencies as the costs of debt decrease and the system is more liquid.
In these scenarios, the desire for risk increases, and investors choose stocks, BTC, and other cryptocurrencies for greater profits than traditional treasures.
Stablecoins and Gold: Caution signs
Meanwhile, the market shows signs of prudence. Stablecoins balance has grown to $229 millionDefilama data reflects flights to “safe” assets.
Stubcoin acquisition reaches 8.5% of the total capitalization of the crypto-active market, jumping from the beginning of the year 6.3%.
At the same time, gold broke records of over $3,000 per ounce this week and merged it as a shelter Before the geopolitical and financial storms unleashed by Trump’s tariff war.
Meanwhile, Coinbase highlights that cryptocurrency performance from November 2024 to January 2025 rose 67% according to the Coin50 index, challenging the low liquidity trend.
but, Recent sales reflect revisions to more severe conditionsadjusts prices to macroeconomic reality.
Coinbase graph suggests a strong relationship between market liquidity and cryptocurrency performance. In general, greater liquidity coincides with improved market performance of cryptocurrency that could show ease of operation, greater interest from investors, potentially higher prices.
It’s a promising future, but there are reservations available
Coinbase analysis is not left on the surface. He acknowledges that Bitcoin’s low performance is not a sector’s inherent weakness, but rather a macroeconomic limitation.
Secular trends such as advances in artificial intelligence can promote economic productivity and, in turn, encourage interest in digital assets. but, Exchange warns that short-term positive catalysts remain rare.
The Bitcoin market and cryptocurrency are at a crossroads. Coinbase forecasts for the newest Bitcoin maximum for 2025 will depend on liquidity recovery and the favourable macroeconomic environment.
Although regulatory advances and institutional participation draw an optimistic horizonvolatility and global unknowns will remain vigilant for investors. Attention is widespread for now, but you can quickly raise the curtains for new acts in Bitcoin Saga.
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