January 2025

Using the Strategic Bitcoin Reserve is one way to bitcoin the world. This means that the dollar could become obsolete, and Bitcoin could become the only currency people prefer. How a bank manages its reserves will significantly impact the global financial system, which could have good or bad effects on the US dollar, depending on the system’s function. The key is how these adjustments are handled.

Bitcoin boosts US dollar value

The dollar would probably gain ground if the US had a Bitcoin reserve since the cryptocurrency would be a great addition to the US financial system. Due to Bitcoin’s increasing popularity as a store of wealth and its finite quantity, the dollar may continue to be the world’s reserve currency.

For the government to purchase assets with lower volatility than conventional fiat currencies, Bitcoin must stabilize the US dollar. As a result, the economy’s inflation problem would be alleviated. For this reason, Bitcoin can act as a safety net for the economy by preventing the dollar from falling too far. This is encouraging news for the U.S.’s potential.

Hyper-bituminization and dollar collapse

Having a Bitcoin reserve on hand, though, can have unanticipated results. The dollar’s value seems to fall as the US government hoards Bitcoin. If this trend continues, people may start to lose trust in the dollar and the current monetary system. Investors and government organizations may opt not to use Bitcoin because governments lack control over it.

In contrast, central banks have power over fiat currency. With the dollar’s permanence, central banks will fade into oblivion. The current trend will lead to Bitcoin becoming the de facto global standard, eventually replacing all national currencies. Bitcoin offers a haven for individuals, businesses, and governments alike, and is quickly replacing fiat cash.

Dollar Hegemony vs Bitcoin

Bitcoin will further undermine the dollar’s dominance once governments begin to own it and utilize it to settle cross-border transactions. Under this scenario, the dollar would eventually fall in value because it would no longer be the medium of exchange for international trade. It may devastate the dollar, to be more precise.

Another argument that could work here is that the US government would lose control of its currency if a Bitcoin reserve were established. The money supply, interest rates, and inflation rate can now be controlled by central banks. As a result, it would be unable to manage the money supply in times of economic uncertainty. Since it is decentralized, the United States government cannot alter its monetary policy in response to economic problems.

Impact of Bitcoin on Dollar Dominance

Potential long-term threats to the US economy and the dollar’s value include competition from foreign markets and global sanctions. The US government may see the Bitcoin reserve as a way to stabilize the economy and increase foreign currency. If this were to accelerate the devaluation of the currency, it might be the same thing. When most Bitcoin transactions are conducted in Bitcoin, the demand for dollars would naturally decline. This shift in global finance might lead to hyper-bitcoinization and establish Bitcoin as the dominant currency on a global scale.

Summary

Based on alternative currencies and financial technology, even if governments start using Bitcoin, the dollar will still be a big deal in global banking. The United States will look to its own experience in introducing digital currency to its national economy for direction. Adding Bitcoin to the reserve will strengthen the United States’s position in the international monetary system.

Bitcoin (BTC) had a good start to the new year. Most analysts expect 2025 to be just as incredible, with Bitcoin predicted to reach $185,000 and beyond. A Look Ahead to Bitcoin in 2025, however, the future may be just as clearly bullish as expected, since sellers seem to be attempting to reestablish themselves in response to recent market activity, which might result in a significant price drop soon.

December Bitcoin Drop Shot Alert

Bitcoin reached around $108,000 in December before dipping below $94,000, its first monthly loss since August. Due to price indecision, the monthly chart showed a bearish “shooting star.” candlestick pattern, representing a huge gap between the high and the open for that period and a modest distance between the close and the open. Although the lower wick may be modest, the upper wick must be twice as large as the body. Bitcoin’s upper wick is four times larger than its body, while its lower wick is fairly small.

The shooting star pattern suggests purchasers first drove prices up. Still, selling seized control at the highs and pulled prices back to the starting level, suggesting bearish sentiment has returned. The CMT Association Level III manual explains the psychological basis of the shooting star pattern.

The bears are potentially in control.”Price movement below the December low of $91,186 would suggest the shooting star’s arrival after a huge rise from $70,000 to above $100,000. This could indicate a negative turn. Bitcoin Shines in 2025, The Bulls defend this level. In bull markets, candles with longer top wicks marked the peak.

Risk assets face tough times ahead, and the latest shooting star’s cautious warning fits in. The key factors are a stronger dollar index, rising Treasury rates, and Fed hawkishness. If the Federal Reserve reverses its recent decision to propose fewer rate reductions for 2025, researchers predict a bullish wide trajectory for Bitcoin and risk assets.

A simpler 2025 prediction: higher. The November 5 events changed little. “February will be the best-performing month,” trader and analyst Alex Kruger said on X, adding that the Fed’s recent hawkishness is still holding back markets. “The Fed will swing back dovish sometime in Q1, with traders pricing more cuts back in,” Kruger said.

Summary

Numerous speculators anticipate that the entire cryptocurrency market will experience a bullish year in 2025. Due to the significant selling pressure that Bitcoin (BTC) experienced on day one, many are concerned that the flagship cryptocurrency will not be able to surpass $95,000. Bitcoin’s Struggle Against, At BeIn Crypto, we analyze key signs to determine the short-term price prognosis for Bitcoin.

Others doubt Bitcoin’s uptrend

After the 2024 US presidential election, the Bitcoin Premium Index reached 0.14. Monitors the Premium Index to determine if US investors are selling in bulk or under severe buying pressure. High values like November’s suggest strong selling pressure. As of now, the index is -0.22, its lowest level in a year.

US Bitcoin investors are selling, as this huge drop shows. Regardless, Bitcoin’s price rose. Last day, it rose 2.06% to $95,318. If these investors keep selling Bitcoin, the trend may reverse and cryptocurrency prices may decrease. Crypto analyst Burak Kesmeci claimed this modification may make Bitcoin’s price climb harder.

Prices and Daily Active Addresses (DAA) differ, supporting this hypothesis. This indicator measures blockchain user engagement and price fluctuation. Bitcoin’s Battle to Surpass A positive value indicates higher user interaction, which is excellent for the coin. Bitcoin’s Struggle Against, A negative reading indicates declining user engagement, so it’s not all good. Bitcoin’s price DAA divergence has reduced to 231%, supporting the second scenario.

If this trend continues, Bitcoin may fall below $95,000. Bitcoin price DAA divergence occurs when the price of Bitcoin moves in the opposite direction of its Daily Active Addresses (DAA). A rising price with stagnant or falling DAA may signal a lack of network growth or investor enthusiasm while increasing DAA alongside rising prices suggests strong market activity and adoption.

Bitcoin Could Fall Below $90k

Bitcoin’s recent gains may be short-lived, according to the exponential moving average (EMA). Compared to price, the exponential moving average (EMA) shows a trend direction. A negative trend is shown by exponential moving average (EMA) slopes above the price. A bullish trend occurs when the price rises above the indicator.

Since cryptocurrency prices are below the 20-day exponential moving average (blue), they may fall further. Bitcoin may drop to $85,851 if it fails to break the 20 EMA and selling pressure increases. Bitcoin’s Struggle Against, This trend may change if US purchasers pressure Bitcoin prices. Such circumstances could boost the coin’s value to $108,398.

Summary

Due to heavy selling pressure, Bitcoin may struggle to exceed $95,000, but the crypto sector should do well in 2025. The Bitcoin Struggle to Surpass Premium Index is at a year-low, indicating US investors are selling. Bitcoin gained 2.06%, but selling might reverse it. The price-Daily Active Addresses (DAA) gap demonstrates decreased user activity, hurting Bitcoin’s price. Bitcoin may fall below $95,000 to $85,851 without US buyers raising it to $108,398.