For many crypto investors, bitcoin may seem impossible (Cryptography: BTC) In 2025, you could go back to life and surge. After all, Bitcoin has fallen by nearly 30% from its all-time high of $109,000 in January, and the intensifying World Trade War threatens to shorten the reborn crypto rally.
However, a recent report from Fidelity Digital Assets suggests that Bitcoin prices may actually be ready to spike. All signs point to Bitcoin having its last major rally in 2025.
To answer this question, it is important to understand the historic four-year Bitcoin cycle: accumulation, growth, acceleration, and crash phases.
Actual profits come at the acceleration phase where Bitcoin becomes very volatile and suddenly fires high. This stage is the culmination of a superfrothy, super-specific gathering that raises Bitcoin to a new high. Fidelity believes this will happen as soon as Bitcoin regains its $109,000 level. If that happens, it’s something that all systems go and Bitcoin is about to spike, so it’s better to keep your seat belts fastened.
The good news is that bitcoin still appears to be in the acceleration stage, according to various important metrics used by Fidelity. In this context, Fidelity said recent decline is not normal.
During the previous acceleration phase, Bitcoin also had a significant double-digit drawdown. According to myths and lore that developed around Bitcoin, this is when you need a “diamond hand” (not a “paper hand”). In other words, despite the intense market volatility, you need to hold your Bitcoin with a rock hard resolve.
But there’s only one catch. The rest of such meetings are disappearing rapidly. Fidelity Digital Assets has carefully studied past Bitcoin cycles and determined it was near the end of a typical acceleration phase. Previous acceleration phases lasted for 244, 261 and 280 days. As of April 4th, it has currently been more than 250 days since the current acceleration phase.
So, if Bitcoin is not shot high before the start of summer, it could be the end of the acceleration phase. That’s when Bitcoin could be in real trouble. As mentioned above, the fourth phase of the four-year cycle is a crash phase where Bitcoin’s value sinks like a rock.
By now you have probably pointed out some red flags mentally. The first red flag is that everything in this analysis is based on Bitcoin’s performance during previous market cycles. And, as we all know, past performances do not guarantee future results. It is especially important to keep in mind Bitcoin as this is a relatively new digital asset.
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