While most people expect the year 2025 to be bullish, the prominent crypto analyst, Rekt Capital shared his prediction at the beginning of the year, speculating the beginning of the bear market in Bitcoin later this year. In the same post, the crypto analyst stated that the “majority of the downside will occur in 2026.”
Under the presidency of newly elected Donald Trump, the cryptocurrency could gain widespread mainstream adoption through Bitcoin reserves and ETFs. New developments could also attract institutional investors. However, Rekt Capital’s forecast raised eyebrows, sparking fear in the crypto community.
People think #BTC will never see another Bear Market because it is mainstream & too mature of an asset
It’s likely one will occur after this Bull Market
The beginnings of a new Bear Market will begin later this year & majority of the downside will occur in 2026$BTC #Bitcoin https://t.co/Bwwh2xmS4Z
— Rekt Capital (@rektcapital) January 3, 2025
The intense bullish rally fueled by Donald Trump’s victory pushed BTC to a new all-time high of $108,000. However, after Federal Reserve Chairman Jerome Powell’s remark over the Strategic Bitcoin Reserve (SBR), the price quickly slipped below $100,000.
However, giant institutions and companies have started growing their BTC pile, including MicroStrategy, Marathon Digital, Riot Platforms, and others.
While adding BTC to the U.S. Treasury’s balance sheet would require congressional approval, the idea of such an initiative carries profound implications.
With the possibility of an SBR, the U.S. effectively invites other major nations to follow in its footsteps. There is a buzz in the crypto market that these countries may feel incentivized to preemptively act, potentially front-running the U.S. to secure a strategic advantage in diversifying their national reserves.
The rise of Bitcoin and Ethereum exchange-traded funds (ETFs) could be a game-changer. Bitcoin is projected to benefit from nearly $50 billion in net inflows as institutional investors show growing interest in these products.
Also Read: How Miners Sentiment Affect Bitcoin Price Recovery for $120k High?