Bitcoin reaches new all-time high of $112,000, but historical cycles suggest potential price declines

From Nasdaq: 2025-05-24 04:00:00

Bitcoin reached a record high of $112,000 on May 22, with a market cap of $2.2 trillion, making it one of the top five most valuable assets globally. Despite this, the historical evidence suggests Bitcoin operates in four-year cycles, with a bubble phase that may lead to price declines.

The cycle is marked by the Bitcoin halving event, occurring every four years, signaling shifts in the market phases. Currently, Bitcoin may be in the bubble phase, which historically lasts 12-18 months. The recent halving in April 2024 indicates potential concerns about the current cycle.

While Bitcoin’s performance closely mirrors past cycles, predicting its future price remains challenging due to increased volatility post-all-time highs. Investors’ sentiments vary, with predictions ranging from $200,000 to potential declines. Understanding the historical patterns may offer insights for long-term gains but requires patience and risk management.

Considering the unpredictability and volatility of Bitcoin, the decision to invest $1,000 in it should be carefully weighed against other potential opportunities. The Motley Fool Stock Advisor team identified 10 stocks with significant growth potential, excluding Bitcoin. Past recommendations have shown substantial returns, emphasizing the importance of diversification and strategic investment choices.



Read more at Nasdaq: Bitcoin New All-Time High: If History Is Any Guide, This Happens Next