Down Almost 50% From Its All-Time High, Is Bitcoin Still a Buy?

Core Viewpoint - Bitcoin is currently experiencing a significant decline, down nearly 50% from its all-time high of $126,000, yet there is a contrarian belief that it will rebound soon and remains a buy opportunity [1]. Group 1: Bitcoin vs. Gold - Gold has seen a substantial increase of over 70% in the past year, recently trading above $5,000 per ounce, leading to skepticism about Bitcoin's status as "digital gold" [2]. - Despite gold's performance, crypto investors believe Bitcoin will outperform gold over the next decade, with predictions of massive outperformance due to the U.S. dollar's weakening and Bitcoin's limited supply of 21 million coins [3]. Group 2: Bitcoin's Market Cycle - Analysts suggest that the traditional four-year boom and bust cycle of Bitcoin may be ending, driven by increased institutional adoption and a supportive regulatory environment, potentially leading to an economic supercycle with higher prices in the next decade [4]. - Historical patterns indicate that Bitcoin's price tends to collapse every four years, raising questions about whether 2026 will follow this trend, although there is hope for a recovery similar to past cycles [5]. Group 3: Institutional Adoption - Institutional adoption is characterized by large investors entering the crypto market through new spot Bitcoin exchange-traded funds, indicating a growing interest in this asset class [6]. - There is a trend among institutional investors to gradually increase their allocations to Bitcoin, with expectations that these could rise from 1% to 3% or higher in the coming years, suggesting a bullish outlook for Bitcoin's price [7].