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A recent report from CCData predicts that Bitcoin is on track to surpass its all-time high within the year, following a significant appreciation cycle.
Bitcoin achieved a record high of over $73,700 in March 2024, but has since fluctuated between approximately $59,000 and $72,000. The surge to the record high was largely attributed to the launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S. in January, which have attracted around $14.41 billion in net inflows. These ETFs allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency, thereby enhancing its legitimacy and attracting institutional interest.
CCData’s report suggests that Bitcoin’s current cycle could extend beyond previous highs. Historically, Bitcoin’s price cycles have followed patterns linked to halving events—periods when the reward for mining Bitcoin is halved, reducing the supply entering the market. These events typically occur before the cryptocurrency reaches a new peak.
The most recent halving occurred on April 19, 2024, and according to CCData, previous cycles have shown that significant price expansion often follows the halving, lasting from 366 to 548 days before reaching a cycle top. The report notes that the current cycle may continue into 2025, with a temporary decline in trading activity on centralized exchanges mirroring past trends.
CCData also pointed out that despite the current sideways price action, historical data and trends indicate that Bitcoin is likely to breach its previous all-time highs before the year ends. The anticipated launch of Ethereum ETFs and other similar products is expected to inject additional capital and liquidity into the cryptocurrency market, further driving demand.
The report highlights that Bitcoin’s price usually experiences a parabolic rise in the months leading up to a cycle peak. In previous cycles, substantial price increases occurred in the four months preceding the record highs. This pattern has yet to be fully realized in the current cycle, suggesting potential for further gains.
Experts, including Thomas Perfumo of Kraken and Vijay Ayyar of Gemini, support the report’s findings, noting that historical cycles typically peak 12 to 18 months after a halving event. Both analysts believe that Bitcoin has not yet reached its cycle top and that breaking previous all-time highs could trigger increased retail investor activity, potentially driving prices even higher.