Bitcoin (BTC), the leading cryptocurrency by market capitalization, is showing signs of entering a new bull market cycle that could push its price to unprecedented levels. As the current price action resembles the run to its $69,000 recent high, investors are wondering what the next bull market has in store.
Bitcoin’s Cyclical History Suggests a Massive Rally Ahead
According to George Tung, a crypto analyst and host of TheStreetCrypto’s YouTube channel, bitcoin’s price movements follow a cyclical pattern that is influenced by a process called halving, which occurs every four years. Halving reduces the number of new bitcoins issued to miners who secure the network by 50%, making the asset scarcer and more valuable.
Tung explained in a video that the current market situation is similar to what happened from 2017 to 2020, when bitcoin plunged from its then-all-time high of $20,000 to as low as $3,800 amid fear, uncertainty and doubt (FUD). However, those who held on to their coins or bought the dip were rewarded with one of the most spectacular rallies in bitcoin’s history, as the price soared to $69,000 by late 2021.
Tung said that he expects a similar scenario to play out in the next few years, as bitcoin is approaching a milestone that has preceded bull runs in the past. He said that for every cycle, there are four points to look at: two lows and two highs. He said that we are heading to the third point, which should be around $48,000, based on historical data.
FOMO Will Reach an All-Time High
Tung also predicted that after reaching the third point, bitcoin will enter a parabolic phase that could take its price to $150,000, $200,000 or even $250,000 by 2025. He said that this will trigger an unprecedented level of fear of missing out (FOMO) among investors who will want to get a piece of the action.
“FOMO this time around is going to be unlike anything we have ever seen before from any previous cycles,” Tung said. He added that this will be driven by not only retail investors but also institutional investors who have been accumulating bitcoin in recent years.
Tung cited examples of companies like MicroStrategy (MSTR), Tesla (TSLA), Square (SQ) and PayPal (PYPL) that have added bitcoin to their balance sheets or enabled crypto transactions on their platforms. He also mentioned countries like El Salvador and Ukraine that have adopted bitcoin as legal tender or passed favorable legislation for crypto.
Bitcoin Is the Solution
Tung concluded his video by saying that bitcoin is the solution to many of the problems that plague the world today, such as inflation, debt, corruption and censorship. He said that bitcoin offers a way for people to opt out of the system and take control of their own money.
“Bitcoin is the solution,” Tung said. “We can only control ourselves. We can’t control what our congress people, and our president, and our Fed chair Powell, we can’t control what they do. But we can control what we do. And how do you opt out of all the shenanigans and all of the troubles that we see? You opt out with Bitcoin.”
