David Bailey Predicts Long Break From Bitcoin Bear Markets

David Bailey, entrepreneur and Bitcoin adviser to ￰0￱ Donald Trump, has claimed that Bitcoin won’t face another bear market for several years, citing growing institutional participation as a key ￰1￱ noted that for the first time, mainstream players like banks, insurers, pension funds, and corporations are beginning to accumulate Bitcoin at scale. “Every Sovereign, Bank, Insurer, Corporate, Pension, and more will own ￰2￱ process has already begun in earnest, yet we haven’t even captured 0.01% of the total addressable market,” Bailey ￰3￱ added that earlier institutional interest amounted only to “outliers with marginal bets.” Bailey, founder of Bitcoin Magazine and BTC Inc., played a central role in Trump’s pro-Bitcoin stance during his election ￰4￱ argues that institutional adoption through vehicles like exchange-traded funds (ETFs) and corporate treasuries—now holding over $100 billion worth of digital assets—will keep Bitcoin on a strong upward ￰5￱ Warn of Potential Headwinds Despite Optimism by Bailey Despite Bailey’s optimism, several analysts caution that risks remain.

A June report by venture capital firm Breed suggested many treasury-backed crypto companies may not survive long-term, raising concerns about another market ￰6￱ Zheng, co-founder and chief investment officer of ZX Squared Capital, noted that crypto remains highly correlated with the stock market. “If the stock market slows into a bear market, crypto will follow,” Zheng ￰7￱ added, however, that with the ￰8￱ Reserve signaling lower interest rates and economic data pointing to a softer labor market, a near-term downturn appears ￰9￱ Hundal, lead market analyst at Australian crypto broker Swyftx, agreed that the market has benefited from a “risk-on” environment but warned of potential ￰10￱ explained that while Bitcoin’s momentum looks strong, macroeconomic shocks could quickly shift investor sentiment back toward safer, fixed-income ￰11￱ Optimism With Caution The last two crypto bear markets occurred in 2018 and 2022, each following a significant bull run.

Bailey’s view suggests that this cycle could be different, with institutional adoption serving as a stabilizing force. However, analysts stress that global macroeconomic conditions, interest rate policies, and unexpected shocks remain decisive ￰12￱ Bailey’s prediction of an extended bull phase holds true or the four-year cycle strikes again, the debate reflects the broader uncertainty surrounding crypto markets as they mature.