It is predicted that bitcoin will likely reach a new record high this year, according to a report.

• According to a research report released by CCData on Tuesday, Bitcoin is unlikely to reach its all-time high this year as it has not yet reached the top of its current cycle.
• The research firm analyzed historical trends, specifically the duration of bitcoin's appreciation following halving, and predicted that if these trends continue, bitcoin could achieve unprecedented heights.
• The approval of Ethereum ETFs in the U.S. will increase demand for cryptocurrencies.

According to a research report released by CCData on Tuesday, the asset has not yet reached the peak of its current appreciation cycle and is likely to surpass its all-time high this year.

Bitcoin reached a record high of over $73,700 in March, but has since been fluctuating between approximately $59,000 and $72,000.

The approval and launch of spot bitcoin ETFs in the U.S. in January largely drove the journey to the record high in March. These ETFs have attracted net inflows of approximately $14.41 billion to date, according to CCData.

By investing in ETFs that track the price of bitcoin, investors can gain exposure to the cryptocurrency without owning it directly. This has helped legitimize the asset class and made it more accessible to larger institutional investors, according to crypto proponents.

Since its launch, bitcoin has experienced three cycles, each involving an ascent to a new record high followed by a descent into a bear market or "crypto winter." These cycles have generally followed a similar pattern.

The halving event, which occurred when the reward for miners was cut in half, resulted in a reduction of the bitcoin supply on the market.

Bitcoin typically rises to its all-time high months before halving, but this cycle has been different. The ETFs in the U.S. have caused a bullishness that led to Bitcoin's latest record high before halving.

Whether bitcoin has reached the peak of its current cycle is a question many have raised since the cryptocurrency's trading range after its all-time high.

According to CCData's report, which analyzed historical bitcoin price movements, the halving event has always been followed by a period of price expansion that can last anywhere from 366 days to 548 days "before producing a cycle top, with each halving experiencing a longer cycle than the one prior, due to maturation of the asset class and lowered volatility."

The last bitcoin halving occurred on April 19 this year, so the historical timeframes have not yet elapsed.

According to CCData, the decline in trading activity on centralized exchanges observed for nearly two months after the halving event in previous cycles has mirrored this cycle. This indicates that the current cycle may continue into 2025.

The analysts acknowledged that the "impact of institutional participants on the industry" in the current cycle has "changed the previous trends," adding that low trading activity is likely to occur in the third quarter, which could suggest more sideways price action.

Despite the data and historical trends, any temporary sideways price action is likely to occur before we surpass the previous all-time highs before the year ends, according to CCData.

The Ethereum ETF launch in the U.S. and other countries will increase capital, liquidity, and demand for the asset class.

The price appreciation of bitcoin tends to occur over a short period of time, as evidenced by the 91.4% increase in the 2012 cycle that took place in the four months prior to the peak. This pattern was also observed in the 2016 and 2020 cycles, with price increases of 78.8% and 71.5% respectively in the four months before the respective record highs.

"No parabolic expansion has been made during the current cycle, according to CCData," said.

Other commentators have highlighted how historical patterns in bitcoin have played out.

According to Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken, historically, market cycles peak 12 to 18 months after a Bitcoin Halving, which occurred in April of this year. Additionally, volatility has not yet reached its prior peak highs. Furthermore, prior market cycle peaks have coincided with a rapid succession of all-time highs, with up to 10 to 20 new highs set in a 30-day window.

"We haven't triggered any of these signals yet."