In a video titled “The Macro Outlook for 2025: BIG Strikes Forward,” Julien Bittel, Head of Macro Analysis at International Macro Investor (GMI) laid out a sweeping perspective on the place progress and inflation tendencies look like heading, why the upcoming cycle seems to be extra akin to 2017 than 2021, and the way Bitcoin might be primed for notable upside if its historic relationship with the Institute for Provide Administration (ISM) Index and world liquidity holds true.
Forcast: Bitcoin Macro Summer season Is Coming
Bittel defined that macro “summer season” is the dominant regime he sees unfolding all through 2025, which means progress momentum is choosing up whereas inflation stays modest sufficient for central banks to keep away from overtightening. He underscored that “the enterprise cycle nonetheless chugs alongside,” pointing to bettering world manufacturing knowledge and to the truth that extra nations have been shifting into growth territory. Though slight fluctuations persist in some indicators, together with pockets that briefly resemble a slowdown, Bittel stays assured that these don’t mark the onset of a brand new macro “fall” with sustained progress deceleration and rising inflation. He as an alternative suggests these headwinds will show short-lived, given an total surroundings by which world monetary circumstances are loosening.
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He highlighted the decline in US bond yields and the latest weakening of the greenback as elements that may enable “extra cowbell” from central banks. China’s bond yields have additionally collapsed, which Bittel sees as a serious sign that Beijing can present extra liquidity injections with out fearing extreme overheating. He described this mixture as an echo of 2017, a yr when a softer greenback and decrease rates of interest contributed to an upswing in each conventional markets and cryptocurrencies.
Turning to inflation, Bittel dissected why shelter and different service-related prices are such vital laggards. He noticed that greater than one-third of headline CPI is tied to housing, which “usually lags house costs by round 17 months,” and identified that shelter inflation continues to be conserving official CPI numbers elevated. He expects this dynamic to offer central banks leeway to ease financial coverage additional as soon as they see the information turning down. Whereas some cyclical forces, equivalent to commodity costs, may push inflation greater later within the yr, Bittel emphasizes that the height is just not imminent and that the Federal Reserve will probably retain sufficient flexibility to keep away from stifling the continued financial rebound.
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In discussing Bitcoin, Bittel zeroed in on the enterprise cycle’s function in driving outsized value actions. He recalled that when the ISM Index barely hovered above 50 in 2013 and 2017, the main cryptocurrency proceeded to rally by dozens of multiples. In 2021, the macro image abruptly topped out as quickly as ISM and liquidity peaked, chopping quick the cycle and capping Bitcoin’s run at roughly an 8x transfer from its preliminary pivot out of recession. Right now’s backdrop seems to be materially completely different. Bittel famous that “the ISM is simply now transferring above 50,” which contrasts with the late 2020–early 2021 surge that raced from the low 40s to the mid-60s nearly in a single breath.
He added that “if we’re proper concerning the weaker greenback and a pickup in world liquidity,” Bitcoin’s path may extra carefully resemble the elongated upturn of 2017 than the compressed momentum of 2021. Though Bittel didn’t supply a exact value goal for Bitcoin, he referenced the historic precedent of a 23x soar in 2017 as soon as the cycle gained traction. His warning was clear—he acknowledged repeatedly that these strikes are by no means assured and that “I’m not telling you Bitcoin goes 23x,” however he additionally confused that in each prior crypto run, persistent power within the enterprise cycle proved to be “the magic reward that retains on giving.” He believes the muse has been set for an prolonged upswing, but reminded everybody that 20–30% drawdowns are inevitable even throughout highly effective rallies.
He additional famous that “when you perceive the place the economic system goes, you perceive the place property are going,” and reiterated that liquidity, particularly from China, may change into a fair larger driver for digital property as 2025 progresses. Bittel strengthened the purpose, saying that “traditionally, the most important surges in Bitcoin occurred when the ISM is rising and we’re in macro summer season.”
He additionally highlighted that any short-term pullbacks in Bitcoin shouldn’t be mistaken for macro regime shifts. The cyclical circumstances, fueled by simpler monetary circumstances, stay in place, although he reminded viewers to anticipate corrections and stay affected person. In his phrases, “it’s by no means a straight line,” and it might really feel like “the tip of the world” in some weeks. But, given the parallels to 2017 and the continued slide within the greenback, he believes the runway for Bitcoin—and different danger property—nonetheless seems comparatively lengthy.
Whereas Bittel’s presentation additionally addressed broader market segments, equivalent to commodities and cyclical equities, Bitcoin obtained particular focus. In explaining why GMI’s macro framework nonetheless indicators optimism, Bittel emphasised that “dips are for getting,” supplied that buyers hold an in depth eye on indicators of any deeper structural slowdown. He confused that “nobody ought to neglect that in case you join Bitcoin, you’re signing up for volatility,” however with the enterprise cycle solely simply starting its ascent and liquidity circumstances gaining traction, there could also be ample room for Bitcoin to maneuver past its earlier peaks if the information proceed to favor cyclical growth.
At press time, BTC traded at $97,710.
Featured picture created with DALL.E, chart from TradingView.com