Bitcoin Soars 20%: Halving Cycle Fears Rise Amid Price Surge
Bitcoin's price has surged by over 20% in the past week, sparking speculation about whether it marks the beginning of a new leg higher or just a dead cat bounce within a bear market. The cryptocurrency peaked at an all-time high of $126,210 in October 2025 but fell more than 50% to around $58,000 two months ago.
The optimistic case for a turnaround rests on the normalization of leverage used by Bitcoin investors and the potential impact of the Treasury's actions to manage yields. Some experts believe that the massive leverage employed last summer left the price vulnerable to deleveraging, which has since normalized, easing pressure on Bitcoin.
However, the bear case is more mechanical, citing the historical pattern of a four-year halving cycle driving boom-bust cycles in Bitcoin's price. The next halving event is projected for April 2028, with a peak potentially occurring in early 2029.