The current Bitcoin price cycle is expected to last longer, with no deep bear market anticipated in the coming years.
Widespread adoption from large financial institutions is creating a new era for Bitcoin, opening up opportunities for sustainable growth and potential risks associated with the participation of large players.
MAIN CONTENT
The Bitcoin bear market may not recur for many years due to the strong increase in demand from financial institutions.
Large institutions such as governments, banks, and pension funds are investing in Bitcoin on a large scale, opening up a new phase of adoption.
Nevertheless, the risk of market volatility remains when companies may be forced to liquidate during corrections.
Why is a Bitcoin bear market unlikely to recur in the coming years?
David Bailey, an expert and advisor on Bitcoin, predicts that a deep bear market for Bitcoin will not appear for many years. He emphasizes that new demand is expanding from traditional financial sectors such as banking, insurance, large corporations, and pension funds.
Bailey stated: "There will not be a Bitcoin bear market for many years. Every entity from government to large companies will own Bitcoin; this process has started, but we still occupy less than 0.01% of the total available market." This statement is based on significant capital inflow, no longer merely small retail investments but a massive influx from large institutions.
According to him, the total liquidity value is currently just under $1 trillion, meaning there is still significant potential for Bitcoin to reach $1 million/BTC.
What risks accompany the increasing adoption of Bitcoin by institutions?
Although adoption by institutions is a positive sign for Bitcoin, many critics argue that financial companies may struggle during downturns and have to liquidate assets. However, Bailey analyzes that companies will experience a clear differentiation between winners and losers, with successful ones receiving higher valuations.
However, the challenges are real. Caitlin Long, President of Custodia Bank, warns that Wall Street is not yet truly prepared for the real-time trading mechanism of the cryptocurrency market, which is entirely different from the traditional financial system that relies on slow payment cycles and risk protection mechanisms.
This cycle is driven by strong purchases from institutions and businesses; however, if companies using excessive leverage have to liquidate during a downturn, it could create a domino effect impacting the entire system.
How long can the Bitcoin bull run sustain?
Most experts agree that the Bitcoin bull cycle is still ongoing. Investor Lin points out that bull markets typically last about 4 years, whereas only about 2.5 years of the current cycle have passed. There is still much room for price increases.
Analyst Dan Tapiero states that according to a Morgan Stanley survey, 82% of investors still do not own cryptocurrency, indicating that popularity is not widespread and there is substantial growth potential.
He also noted that current investors hold much smaller positions compared to 2022, predicting that barriers to entry remain high and prices will establish new peaks in this cycle. "2026 will be a booming year," he said.
"There will not be a Bitcoin bear market for many years. Every entity from government to large companies will own Bitcoin."
– David Bailey, Bitcoin advisor, 23/08/2025, Twitter
"Wall Street is still not ready for how the cryptocurrency market operates in real-time, creating significant challenges for large institutions."
– Caitlin Long, President of Custodia Bank, 22/08/2025, CNBC
Frequently Asked Questions
Will Bitcoin still experience bear cycles in the near future?
Based on expert opinions, a deep bear market is unlikely to recur in the coming years due to significant participation from large financial institutions.
What is driving the demand for Bitcoin at this time?
Adoption from the government, banks, large businesses, and pension funds is driving high liquidity, expanding the upward trend for cryptocurrency.
What are the main risks when institutions participate in Bitcoin?
Risks include the possibility of being forced to liquidate if the market corrects, especially with companies using significant financial leverage that can cause strong volatility.
How long will the Bitcoin bull run last?
The current bull cycle is expected to last about 4 years and has just passed more than half of the journey, with many opportunities for growth still remaining.
What percentage of investors do not own cryptocurrency?
According to the Morgan Stanley survey, as many as 82% of investors have not yet accessed or held cryptocurrency, indicating substantial growth potential.
Source: https://tintucbitcoin.com/co-van-trump-bitcoin-khong-giam-dai/
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