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.

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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.

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