Bitcoin Bear Market May Be At The Bottom: Rally From Here?

Reports suggest that Bitcoin (BTC) has fallen to its cost of production zone, a level which has historically been a bear market bottom. BTC has been hovering at the $63,000-$64,000 price level for quite some time. The asset has dipped nearly 50% since its 2025 all-time high and investors are becoming weary about where BTC may go next. Let’s discuss.

Is The Bear Market Coming To An End For Bitcoin?

There are several factors that will contribute to Bitcoin (BTC) entering its next bull run. Firstly, there was a liquidity drain from the cryptocurrency market earlier this year. A substantial chunk of the capital may have moved into the stock market, especially AI-based stocks. AI memory chips have also seen significant growth over the last year. However, the memory cycle may be at its peak and prices could dip by the end of this year or by early 2027. We could capital flow back into Bitcoin (BTC) and the larger cryptocurrency market.

Secondly, inflation has been slowly going down over the last few months. If the pattern persists, we could see the Federal Reserve lower interest rates. Lower rates will likely give more confidence to investors to take riskier investments. Bitcoin (BTC) could benefit from such a situation.

Thirdly, the war between US and Iran could be near its end. President Trump has expressed desire to finalize a peace deal between the two countries that would reopen the Strait of Hormuz once again. Oil prices could stabilize and investor confidence could see an upswing. Bitcoin (BTC) could benefit from such a development.

Also Read: 3 Signs To Look For Before Bitcoin Hits $100,000

Lastly, Bitcoin (BTC) has historically followed a four-year pattern. The asset has climbed to new all-time highs in 2017, 2021, and 2025. Many experts anticipate BTC to maintain its four-year trajectory. Going by that pattern, BTC will likely climb to a new all-time high sometime in 2029. However, the journey to a new peak could start sometime in 2027.