NEXT BITCOIN PEAK: WHY IT COULD BE 2 YEARS AWAY.
Bitcoin’s last all-time high was $69,000 in November 2021; as of September 2023, it’s been 22 months since that peak. While estimating what price Bitcoin could reach next can be very useful, it’s also important to estimate when a new peak could occur.
History suggests this may still be some time away, as analysis shows that the next Bitcoin peak could arise around the end of 2025.
Market participants could anticipate the next Bitcoin peak around October-December 2025 if this pattern persists. The subsequent bottom could then occur around October 2026.
THE HALVING THEORY:
Approximately every four years, Bitcoin undergoes a ‘halving’ event, during which the reward for mining new blocks (i.e. the new supply of Bitcoin) is halved. This mechanism ensures the scarcity of Bitcoin, which is capped at a maximum supply of 21 million coins. A simple economic principle suggests that prices rise when supply drops while demand stays constant or grows.
Historically, Bitcoin has reached a new peak a year after each halving. Given that the next halving is projected to be in April 2024, it aligns with the chart above, showing the next Bitcoin peak to be around the end of 2025.
