Bitcoin Bull Market Approaching Final Phase
According to Saifedean Ammous, expert educator and the author of The Bitcoin Standard, Bitcoin is expected to hit its bull market peak soon. He warns that even corporate buyers could be vulnerable in the event of a price drop. Ammous speculates that despite the current price action, Bitcoin has the potential to experience a downturn of 80%.
Attention Shifts From Bull to Bear Market
Long-standing Bitcoin enthusiasts and experts are seemingly diverting their focus on the anticipation of bear markets over the excitement surrounding bull markets. They have cautioned about the potential lack of attention towards bear markets and how this could negatively affect current and future investors.
Bitcoin’s price is on unstable terrain as experts anticipate its next peak. An expected downturn is speculated once the bull market ends, despite significant involvement from institutions and an evolving market structure. This level of instability posits Bitcoin as a potentially risky venture for the less experienced or more cautious investors.
Institutional Involvement and Market Maturity
Ammous had a detailed discussion on phenomena such as institutional investors and corporate treasuries. He more than hinted at the volatility in Bitcoin’s price, explaining that market maturity doesn’t necessarily protect from an up to 80% crash which can happen when Bitcoin experiences a comedown from bull market peaks.
He urged the Bitcoin community to be prepared for such drops, saying that Bitcoin has already endured drops of -70% and -80% in the past and might experience them again. This is indicative of what could potentially occur for Bitcoin and its investors in the near future.
Past Price Cycles and Predictions
Considering the history of Bitcoin price cycles, it was noted that the long-term top happened between one and eighteen months after the last block subsidy halving event. While acknowledging that Bitcoin’s price could possibly hit $200,000 or more this cycle, Ammous also revealed that current trough-to-peak gains sit at over 600%.
He emphasized that since hitting its lowest point, Bitcoin’s price has surged from $15,000 to $109,000—a significant increase over a relatively short period. This trend isn’t inconsiderable and offers a glimmer of hope for potential investors looking to delve into crypto trading.
Corporate Bitcoin Investments
Corporate companies, recently, have been showing increased interest in adding Bitcoin to their balance sheets. As a result, the trend has now extended beyond the United States. For example, Paris-based firm Blockchain Group recently added approximately $68 million worth of Bitcoin to bring its total Bitcoin holdings to nearly 1,500 BTC.
Ammous’ sentiment was echoed by Bitcoin commentator, Max Keiser, who expressed doubts about these new entrants in the Bitcoin industry enduring the kind of price volatility that is common during Bitcoin bear markets. He specifically pointed out how untested these companies are in the face of a bear market.
Varying Forecasts on BTC Price
The future price of Bitcoin is still a topic of great debate among investors and commentators, with forecasts varying greatly. Ammous suggests a potential target of $200,000 or more for Bitcoin by 2025, although nothing is guaranteed in the world of cryptocurrency.
All traders should be aware that all investment and trading moves involve some level of risk. Therefore, they should carry out their own research before making decisions about their investments. Above all, understanding the nuances of the bull and bear markets could make a significant difference.
