Bitcoin Nearing New Highs? Experts Predict Supercycle
As Bitcoin approaches its historic highs, analysts are optimistic about its potential to surpass the $73,800 mark reached last March. Some even believe this rise could be part of an unprecedented “supercycle.” Dive into the predictions for this surge and the political maneuvers that might be the catalysts.
Experts’ Predictions on Bitcoin
Alex Krüger, a well-known economist in the crypto sphere, predicts that Bitcoin is entering a new “supercycle,” marking a significant transformation in the cryptocurrency market.
In a recent interview, Krüger highlighted the growing impact of Wall Street and the introduction of exchange-traded funds (ETFs) on the market landscape.
He asserts that this new phase will see less severe corrections compared to previous cycles. Market fluctuations will still occur, but they are expected to be more moderate, with corrections limited to around 20%.
The increasing involvement of traditional financial institutions is boosting demand for Bitcoin, according to Krüger. He anticipates that asset managers will advocate for a larger allocation of BTC in portfolios, viewing it as an emerging asset similar to “digital gold.”
Krüger remains confident in the supercycle theory as long as Bitcoin’s market value remains a fraction of gold’s and continues to be underrepresented in investment portfolios.
Bitcoin Supercycle: Myth or Reality?
The Bitcoin supercycle theory, popularized by Dan Held in 2020, posits that Bitcoin could reach unprecedented price levels, supported by continued adoption and institutional support, while mitigating the risks of significant declines.
Halvings, events where the reward for miners is halved, create a supply shock that has historically led to significant price increases.
The Bitcoin network continues to expand with new uses such as the Lightning Network for scalability and Ordinals for non-fungible tokens (NFTs).
In 2023, institutional demand for Bitcoin exploded with giants like BlackRock and Fidelity now offering Bitcoin ETFs. Evander Smart, a professor at the University of Bitcoin, states:
“Bitcoin has been the world’s best-performing investment since its inception in 2009, offering extraordinary returns each year.”
According to him, adoption by Wall Street has been a true catalyst, propelling the queen of cryptos towards this long-awaited supercycle.
In 2024, Bitcoin rose by more than 70%, surpassing $72,000 in the first quarter.
With the support of influential political figures like Donald Trump and increased investor optimism, Bitcoin recently reached $69,000, rekindling hopes of a sustained and spectacular rise.
