Bitcoin's Next Bear Market: A Distant Prospect or Imminent Threat?
David Bailey, a Bitcoin adviser, predicts no bear market for years due to institutional interest. He believes major financial entities will increasingly hold Bitcoin, with the market currently capturing less than 0.01% of its TAM.
However, analysts like CK Zheng and Pav Hundal caution that crypto's correlation with the stock market means a downturn could occur if equities falter. Macroeconomic shocks and a potential re-rotation into fixed income could also impact Bitcoin.
Traditional cycles suggest a bear market may be due, with potential triggers including leverage unwind, regulatory shocks, or concerns about crypto treasury firms. Some analysts, however, see the possibility of an "up only" trend for Bitcoin, similar to gold, with regular corrections presenting buying opportunities.