Bitcoin has fuel to continue rising in price, according to Grayscale
Bitcoin (BTC) continues to generate positive expectations among investors and companies in the digital asset sector, even after experiencing a significant correction recently.
The currency reached an all-time high of $108,000 yesterday, December 17, however, Its price fell to $98,000 todayas seen in the following graph of TradingView.
According to a report According to Grayscale Research, this volatility is part of bitcoin’s usual cycles, which show long-term bullish trends.
The firm maintains that market indicators suggest that BTC still has room to grow, although it is far from the levels at which prices have reached maximum peaks in previous cycles. Therefore, they consider that current bull market could extend even beyond 2025.
“While we cannot be sure that future returns will resemble past cycles, bitcoin’s history indicates that the bull market could last in both magnitude and time,” the firm said.
Macro and political factors influence the market
The recent bitcoin crash emerged following the statements of the president of the Federal Reserve, Jerome Powellas reported by CriptoNoticias.
The official stated that the institution cannot hold bitcoin as an assetsuggesting that this matter falls to Congress.
However, political prospects could also play in the bitcoin market’s favor, as US President-elect Donald Trump promised to create a strategic reserve in bitcoin during his term.
So far, the long-awaited regulatory advances offered by Trump for his next administration and the successful performance of spot bitcoin ETFs in the United States have enabled greater institutional adoption. This has generated significant capital inflows, consolidating bitcoin as a relevant asset in the global economy.
Optimistic predictions for bitcoin price
Coinciding with Grayscale’s analysis of BTC’s bullish future, specialists such as Iván Paz Chain, CEO of Trading Different, project that bitcoin could reach $140,000 in the medium term.
Pablo Gil, a Spanish analyst, also predicts a bullish rally that could extend into next year, with a similar price target.
The outlook for other cryptocurrencies
Grayscale points out that The cryptocurrency market is much broader than bitcoin. The performance of other digital assets also provides important clues about the market cycle.
In previous cycles, bitcoin dominance peaked two years after the start of the bull market. Currently, this domain is declining, which could indicate growth in other sectors of the industry.
Dominance is calculated by dividing the BTC market capitalization by the total cryptocurrency market capitalization.
When dominance is high, it is a sign that much of the money in the market is concentrated in BTC. On the other hand, a drop in this indicator, suggests investors are diversifying their altcoin holdings (cryptocurrencies that are not bitcoin).
Grayscale points out that Cryptocurrencies could still be in the middle of their bull cycle. Fundamentals such as app adoption and macroeconomic conditions support this trend. As long as these factors remain present, the market could maintain its bullish momentum into 2025 and beyond.