As Bitcoin nears its all-time highs again, analysts are optimistic about its ability to surpass the $73,800 reached last March. Some even believe that this rise could be part of an unprecedented “supercycle.” Dive into the predictions of this surge and the political maneuvers that could well be its catalysts.
Experts' predictions about Bitcoin
Alex Krüger, a well-known economist in the crypto sphere, predicts that Bitcoin enters new 'supercycle'marking a significant transformation of the cryptocurrency market.
During'a recent interviewKrüger stressed the growing impact of Wall Street and the introduction of exchange-traded funds (ETFs) into the market landscape.
He says that this new phase will see less severe corrections compared to previous cyclesMarket fluctuations will still be present, but they should be more moderate, with corrections limited to around 20%.
L'increasing involvement of traditional financial institutions is driving demand for Bitcoin, Krüger said. He anticipates asset managers will advocate a larger allocation of BTC in walletsconsidering it 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 it continues to be underrepresented in investment portfolios.
The Bitcoin Supercycle: Myth or Reality?
There Bitcoin Supercycle Theory, popularized by Dan Held in 2020posits that Bitcoin could reach unprecedented price levels, supported by continued adoption and institutional supportwhile mitigating the risks of significant declines.
Halvings, events where the reward for miners is cut in half, create a supply shock that historically has led to significant price increases.
The Bitcoin network continues to grow with new uses like the Lightning Network for scalability and Ordinals for non-fungible tokens (NFTs).
In 2023, institutional demand for Bitcoin has exploded with giants like BlackRock and Fidelity now offering Bitcoin ETFs. Bitcoin University professor Evander Smart says:
” Bitcoin has been the world's best performing investment since its inception in 2009, delivering extraordinary returns every year. »
According to him, Wall Street's adoption has been a real catalyst, propelling the queen of cryptos into this long-awaited supercycle.
In 2024, Bitcoin climbed 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 hit $69,000, rekindling hopes of a sustained and spectacular rise.
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