A new report from Fidelity Digital Assets raises the question of whether Bitcoin has reached its cyclical peak or is preparing for a new rally.
Current Bitcoin Price Cycles
Fidelity analyst Zack Wainwright notes that Bitcoin’s price cycles follow distinct 'acceleration phases' marked by volatility and profit opportunities. The last example was in late 2020, when BTC surged past $20,000. Despite recent struggles, Wainwright argues that current price action aligns with historical post-acceleration patterns. As of March 3, Bitcoin was in its current acceleration phase for 232 days, nearing previous cycles lasting slightly longer.
Role of Institutional Investors
Major players continue to accumulate Bitcoin despite economic uncertainties and challenges in breaking $100,000. MicroStrategy CEO Michael Saylor announced the acquisition of 22,048 BTC for $1.92 billion. Mara Holdings and Japanese firm Metaplanet are following suit, along with GameStop.
Price Target Predictions
While the impact of institutional accumulation on short-term prices remains unclear, Wainwright suggests tracking new all-time highs. A new target price could be $110,000 if the trend continues.
The possibility of another Bitcoin rally remains uncertain. Institutional purchases and historical trends indicate potential growth, but its trajectory is still unclear.
