Bitcoin's Recovery Still in Early Stages, Inflation Remains Main Concern
Bitcoin's recovery from its July low is still in its early stages, according to Ecoinometrics. The firm suggests that Bitcoin could reclaim its all-time high of $126K by Q1 2027, but it would take a longer recovery timeline, stretching into February 2027.
The current rebound is approximately three months old, and the asset has already recovered 46% from its low. However, Ecoinometrics notes that this recovery 'does not look mature yet' as it's still about 30% below its ATH.
On-chain data supports this outlook, with prominent Bitcoin quant analyst Frank Fetter citing the Choppiness Index, which measures market conditions. The index is currently near a peak, indicating sideways conditions and delaying the expansion or recovery phase.
The main factor holding back Bitcoin's recovery is inflation. Ecoinometrics notes that headline US inflation has been sticky and hasn't trended down as expected, limiting how aggressively investors can lean into it.