Bitcoin’s massive rally is on track to be its biggest weekly gain since November 2024. The cryptocurrency has skyrocketed more than 11% since Monday, a clear sign that bullish strength is returning to the market.
U.S. Bitcoin’s price remained relatively stable above $95,000 during U.S. afternoon hours. This stability represents a 1.8% increase in the past 24 hours. Analysts suggest this rally is likely the beginning of Bitcoin's climb to fresh record prices, signaling a bullish trend for the digital asset.
Decoupling from Traditional Markets
Bitcoin’s recent performance further highlights its decoupling from traditional macro assets such as U.S. stocks and gold. This divergence is a symptom of a rapidly changing perception of Bitcoin as an independent investment vehicle.
"It's rare to witness market inflection points in real time, as we only tend to recognize major regime shifts with the benefit of time and reflection." - David Duong, Coinbase Institutional's global head of research
This price increase has occurred in the context of market depth appearing weak on the spot Bitcoin market. According to Dr. Kirill Kretov, lead strategist at CoinPanel, liquidity in the new spot Bitcoin market has been “severely drained.
"This week's decoupling of bitcoin's performance from that of traditional macro assets may be as close as we come to such a moment." - David Duong, Coinbase Institutional's global head of research
Liquidity Dynamics and Market Vulnerability
Majority of Bitcoin liquidity has exited actively transacting addresses—such as exchanges, etc.—since the all-time high in November 2021. The decrease in available Bitcoin forces the market to be more sensitive to price fluctuations.
CoinPanel’s lead strategist, Jason Deane, said violent moves of 10% up or down are likely to persist. Predictably, this volatility will be business as usual for the immediate future.
"The market is thin, vulnerable, and easily moved by large players." - Dr. Kirill Kretov, lead strategist at CoinPanel
If conditions remain as they are, experts are predicting even more gains for Bitcoin—many of them projecting major price jumps in the next several months. John Glover, chief investment officer of crypto lender Ledn, foresees Bitcoin climbing to a cycle top around late 2025 or early 2026.
Bullish Outlook and Future Projections
Technical analysis suggests that Bitcoin has entered the fifth and final wave of its multi-year bull market, based on Elliott Waves. Another outfit preparing for launch — funded by Tether, Bitfinex, SoftBank and an affiliate of Cantor Fitzgerald. They intend to passively hold 42,000 Bitcoin—mirroring Michael Saylor’s investment strategy almost dollar-for-dollar.
"My expectations continue to be for a rally to $133-$136k into the end of this year, beginning of next." - John Glover, chief investment officer of crypto lender Ledn
Technical analysis suggests that Bitcoin has entered the fifth and final wave of its multi-year bull market, based on Elliott Waves. Additionally, a new firm backed by Tether, Bitfinex, SoftBank, and a Cantor Fitzgerald affiliate plans to hold 42,000 Bitcoin at launch, mirroring Michael Saylor's investment strategy.
