FBS, a prominent global brokerage firm, has released an in-depth expert analysis that delves into how significant macroeconomic shifts, particularly the normalization of the US Treasury yield curve, are poised to foster substantial growth opportunities within the cryptocurrency market throughout 2025. After a two-year period marked by an inverted yield curve—a phenomenon widely recognized as a precursor to economic recessions—the critical spread between the 10-year and 2-year US Treasury bond yields is now showing clear signs of rebound. FBS analysts interpret this development as a pivotal turning point for overall investor sentiment and market liquidity, with digital assets anticipated to be among the primary beneficiaries of this changing landscape.

Historically, periods during which the yield curve normalizes often align with heightened expectations for interest rate reductions. This typically occurs as central banks begin to adjust their monetary policies to support slowing economies. In the current economic cycle, the ongoing deceleration of inflation, coupled with increasing political pressure on the Federal Reserve, is intensifying anticipation for a decisive shift towards lower interest rates. This forward-looking sentiment is already being factored into market pricing, and the cryptocurrency markets are keenly responsive to these macroeconomic signals.

The FBS team highlights that easing monetary policies have consistently served as powerful catalysts for digital assets. A prime example cited is the year 2020, when Bitcoin experienced an extraordinary surge of over 500% following a series of rate cuts implemented by the Federal Reserve. The analysis suggests that as inflation continues to slow and investor confidence progressively returns, the cryptocurrency market may be on the cusp of entering a new, robust cycle of growth. This potential resurgence is predicated on a more favorable monetary environment.

Furthermore, the report provides specific technical insights into the crypto market. Bitcoin, the flagship cryptocurrency, has reportedly formed a bullish technical pattern, commonly referred to as a "cup and handle." This pattern suggests potential significant upward movement, with a critical resistance level identified at $105,000. A definitive breakout above this level could pave the way for a rally towards $157,000, or even potentially reach $240,000. Concurrently, altcoins, which are alternative cryptocurrencies, are also exhibiting renewed vitality, with the Altcoin Season Index indicating a possible momentum shift away from the long-standing dominance of Bitcoin, suggesting a broader market recovery.

While acknowledging the persistent risk of short-term volatility that is inherent in the cryptocurrency market, FBS analysts strongly emphasize that the prevailing macroeconomic signals—ranging from trends in bond markets to the Consumer Price Index (CPI)—now collectively point towards a significantly more supportive environment for cryptocurrencies and other risk-sensitive assets. This comprehensive market breakdown and crypto forecast is available for users to review in the latest FBS analysis, offering valuable insights into the prospective trajectory of digital assets.