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Bitcoin Market Cycle Predicted to Extend to 2026 Due to Institutional Demand
Following a turbulent trading week, Bitcoin prices have declined by 12%, now below $110,000 from its all-time high of $124,457.
Institutional Demand and Market Cycle Predictions
- Historically, crypto market cycles peak in Q4 of the fourth year due to post-halving hype and demand.
- Ted Pillows predicts a different pattern aligning with the US business cycle, potentially extending the current Bitcoin cycle to 2026.
- The US Federal Reserve's recent rate cut could enhance liquidity, encouraging investment in risk assets like Bitcoin.
- JP Morgan forecasts further rate cuts in 2025 and one in 2026, supporting this trend.
- Bitcoin Spot ETFs have facilitated institutional investments, with inflows valued at $57.23 billion.
- If US macroeconomic forces dominate, Bitcoin might peak in Q1 or Q2 2026 despite recent declines.
Short-Term Price Movements
- Bitcoin recently bounced off the $109,000 support level and may reclaim the $112,000 resistance level.
- If successful, the price could rise to $117,000. Conversely, breaking below $109,000 might push prices to $101,000.
- Currently, Bitcoin trades at $109,420, a 0.25% decline over the past day.
