Bitcoin May End 4-Year Cycle, Signaling Potential 2026 Downside

Bitcoin Hits $125K Peak Amid Mixed Expert Predictions and Increasing Regulatory Influence for 2026

  • Bitcoin potentially completed its four-year halving cycle with a peak at $125,000 on October 6, signaling possible short-term declines.
  • Some experts anticipate a Bitcoin market downturn in 2026, while others expect new all-time highs driven by regulatory progress and institutional adoption.
  • Crypto regulatory developments, especially in the U.S., are expected to continue impacting market dynamics in 2026.
  • Investor sentiment and social media trends have turned bearish after Bitcoin fell below $85,000 recently.
  • “Smart money” traders show bearish positions on Bitcoin but hold significant long positions on Ether, indicating differing expectations for top cryptocurrencies.

Bitcoin reached an all-time high of $125,000 on October 6, which may mark the top of its current four-year halving cycle, according to Jurrien Timmer, global macroeconomic research director at Fidelity. He cautioned that this milestone could signal a Bitcoin “winter,” where prices decline for about a year, with possible support between $65,000 and $75,000, mentioned in his X post.

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This view contrasts with other crypto analysts like Tom Shaughnessy, co-founder of Delphi Digital, who expect Bitcoin to achieve new all-time highs in 2026 after recovering from the $19 billion market crash in early October. Shaughnessy described the recent selloff as a “one-time disastrous 10/10 liquidation event” and forecasted that prices will rebound as the market processes this event, according to his X post.

Regulatory progress in the crypto sector is anticipated to continue driving market potential. Cathy Yoon, general counsel at Temporal and Harmonic, highlighted that 2026 should bring continued advances in U.S. cryptocurrency legislation, focusing on implementation, regulatory examinations, disclosures, and integration with payment systems and financial infrastructure.

Investor sentiment took a downturn when Bitcoin dropped below $85,000 this week. Market intelligence platform Santiment reported an increase in bearish commentary across social platforms like X, Reddit, and Telegram. Simultaneously, “smart money” traders, those tracked by blockchain intelligence platform Nansen for top returns, are betting on a short-term decline in Bitcoin with net short positions totaling $123 million. However, the same group holds strong bullish positions on Ether (ETH) with approximately $475 million in net longs, based on Nansen data.

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