Bitcoin Face Bear Market Amid Four-Year Cycle and Inflation, Analysts Predict $100K Rally by Year-End

According to Fortune, multiple analysts on July 12 cited a four-year cycle, inflation pressure, and leverage liquidation as factors keeping Bitcoin in bear market territory. Bitwise Chief Investment Officer Matt Hougan noted the four-year cycle continues to influence investor sentiment, while Grayscale Research Director Zach Pandl attributed the downturn to macro factors, including U.S. inflation reaching 4.1% in June, above the Federal Reserve's 2% target. Market deleveraging is also weighing on Bitcoin, with analysts noting that leverage accumulated during bull markets is being squeezed out as conditions weaken.

Despite near-term pressure, some analysts are optimistic. 21Shares Chief Investment Strategist Adrian Fritz predicts Bitcoin will bottom in summer and rally to $100,000 by year-end, citing expectations for future rate cuts and geopolitical developments.