Key Takeaways
- Grayscale predicts Bitcoin could hit new highs in Q1 2025.
- January's U.S. jobs report came in weaker than expected.
- Stablecoin legislation progress could provide a policy boost.
Bitcoin could reach new all-time highs in Q1 2025, according to Zach Pandl, head of research at Grayscale.
He believes that while the latest U.S. jobs report came in weaker than expected, Bitcoin will remain resilient due to policy tailwinds and stable equity markets.
Jobs report analysis
On Feb. 7, U.S. officials reported 143,000 jobs added in January, falling short of the expected 169,000.
However, Pandl stated that Bitcoin is likely to “take today’s jobs report in stride” as it reinforces expectations that the Federal Reserve will keep interest rates unchanged for now.
Fed rate expectations
The CME Group’s FedWatch Tool showed that after the report, the probability of a 0.25% rate cut in March dropped to 8.5%, down from 14.5% earlier in the day.
Policy developments
Pandl highlighted ongoing policy-related tailwinds benefiting Bitcoin, particularly the progress of stablecoin legislation in the U.S.
On Feb. 7, two members of Congress introduced a draft bill that would regulate dollar-pegged stablecoins.
Stablecoin legislation details
The proposed legislation would:
- Ban self-issued collateralized stablecoins for two years.
- Require the U.S. Treasury to conduct a study on stablecoins.
Market sentiment
As long as equities remain stable, Pandl expects:
Bitcoin markets to trade with a bullish bias.
On Feb. 7, Bitcoin briefly spiked to $100,000 before pulling back, suggesting that investors are still optimistic despite macroeconomic concerns.
