Bravos Research: You Don’t Want to Miss This

Cryptocurrencies have sold off this week, liquidating leveraged trades. From its peak, bitcoin is now down over 20%, a meaningful pullback. In the meantime, that’s taken bitcoin’s market cap under $2 trillion.

That’s still one tenth the size of the gold market, which recently topped $20 trillion. And gold continues to inch higher, with one ounce right under $3,000. Given crypto’s four-year market cycles, bitcoin may make a run to close its market cap with gold this year.

That’s because bitcoin tends to rally for three years, then take a year off. After starting to trend higher in 2023 and rallying over 100% in 2024, bitcoin has one year left. Historically, this last year has been the big mover for higher prices.

Meanwhile, institutional demand for bitcoin continues to grow. From ETFs to large firms buying bitcoin, more is being bought and held than ever before. And following last year’s halving, the rate of buying well exceeds the creation of new bitcoin from mining.

That points to a further price shock higher later this year. Despite the recent volatility, which has always been a feature of bitcoin trading, more upside likely remains ahead.

With inflation still looking sticky, and with money supply continuing to increase overall, bitcoin’s fundamentals remain intact as well.

For the full analysis on bitcoin’s latest moves, click here.