Bitcoin Falls to Half of $126K Peak Since October; Analysts Predict $100K Rebound by Year-End

According to Odaily, Bitcoin has been declining since October last year and currently trades near half its historical high of $126,000, amid a prolonged bear market. Industry analysts attribute the downturn to three main factors: Bitcoin's four-year cycle, macro inflation pressures, and market deleveraging.

Bitwise Chief Investment Officer Matt Hougan noted that the four-year cycle continues to influence investor psychology, with investors historically reducing long-term positions after three-year bull runs. Grayscale Research Director Zach Pandl pointed to rising U.S. inflation weakening rate-cut expectations, driving capital flows toward higher-yielding traditional assets. 21Shares Chief Investment Strategist Adrian Fritz expects Bitcoin to bottom around $58,000 this summer and potentially rebound to $100,000 by year-end as rates ease and geopolitical tensions settle.