In a recent analysis, renowned cryptocurrency analyst Michaël van de Poppe shed light on Bitcoin's potential trajectory in this bull cycle. According to the analyst, the price of Bitcoin may rise to $200,000 or even $500,000 as the markets witness an unprecedented inflow of money.
According to the analyst, markets are currently experiencing a greater flow of money than ever before. This is evident from the recent inflows into ETFs, which show increasing interest in the cryptocurrency market.
The concept of diminishing returns has been a hot topic in recent months. This concept suggests that markets will make a lower peak this time due to 'tapering' returns from previous bull cycles. For example, the 2021 peak provided a percentage gain of 2,000%, while the 2017 peak provided a 12,000% gain compared to the cycle low.
However, van de Poppe expresses some concerns about this theory. He questions the focus on diminishing returns and the validity of the theory. Noting that tech stocks soared after the 2008 cycle and bear market, he notes that Bitcoin as a technological advance could potentially attract a larger amount of cash flow into the asset. This makes the theory behind diminishing returns seem weak, according to the analyst.
Van de Poppe believes we are entering a cycle that will be remembered as the 'Cryptocurrency dot.com' bubble. In this cycle, the world will not only use crypto as a whole, but will also understand that crypto and Bitcoin are the future.
According to the analyst, the duration of this cycle is uncertain and largely depends on how long the liquidity cycle lasts. Because the Fed must lower interest rates, markets may continue to rise until rates drop to zero and remain there for several months.
According to the analyst, in the most likely scenario, a peak could be seen in the 3rd / 4th quarter of 2025. However, if liquidity remains valid, it is reasonable to suggest that this bull cycle could last longer, possibly into 2026 or 2027. According to the analyst, Bitcoin could potentially rise to $250,000 or even $600,000 during the bull period.
In addition, Van de Poppe claimed that a devastating crisis and collapse similar to that seen in 1929 and 1930 could be witnessed. This could lead to deflationary rates, disruption of financial systems and high debt levels for a decade. However, Bitcoin and Gold can serve as a safe haven during this period and lead to Bitcoin becoming a standard.
The analyst said that with the liquidity collapse, there may be a decrease of up to 80% in the BTC price, but the focus should be on purchasing power rather than dollar value.
*This is not investment advice.