Bitcoin (BTC) has seen a rollercoaster of price fluctuations in recent months, with some analysts questioning whether the cryptocurrency is entering a period of stagnation or gearing up for another explosive rally. A new report from Fidelity Digital Assets suggests that the cryptocurrency is still in its acceleration phase, and the bull market is far from over.

Fidelity’s analyst Zack Wainwright points out that Bitcoin’s acceleration phases are characterized by high volatility and substantial profits. He draws parallels to previous phases in Bitcoin’s history, particularly the surge above $20,000 in December 2020, which marked a dramatic price increase. Wainwright argues that while Bitcoin’s current performance, with an 11.4% loss year-to-date and a 25% drop from its all-time high, may seem concerning, it aligns with Bitcoin’s historical performance after acceleration phases.

Wainwright also suggests that Bitcoin’s current acceleration cycle is likely nearing its peak, as March 3 marked day 232 of the phase. Previous cycles, such as those in 2010-2011, 2015, and 2017, reached their peaks on days 244, 261, and 280, respectively. This indicates that each cycle has slightly lengthened, meaning the market could still be in the final stages of the current phase before a more significant correction sets in.

While Bitcoin has struggled to break through the $100,000 mark since February 21, with market sentiment affected by global issues such as tariff wars and concerns about a possible recession, institutional investors continue to show faith in Bitcoin’s long-term value. This is evident from large-scale acquisitions made by companies like MicroStrategy and Marathon Digital Holdings. On March 31, MicroStrategy’s CEO, Michael Saylor, announced that the company had purchased an additional 22,048 BTC at an average price of $86,969 per Bitcoin, totaling nearly $1.92 billion. Additionally, Marathon Digital Holdings (MARA) revealed plans to sell up to $2 billion in stock to purchase more Bitcoin.

These moves demonstrate that major players in the financial world are not deterred by short-term price fluctuations. Rather, they are making substantial investments in Bitcoin as a reserve asset, anticipating long-term gains. Similarly, Japanese firm Metaplanet issued ¥2 billion ($13.3 million) in bonds on March 31 to acquire more Bitcoin, reinforcing the growing trend of institutional buying.

Fidelity’s research also highlights that Bitcoin tends to experience two major surges during its acceleration phases. If the current cycle follows the historical pattern, Bitcoin could see another massive rally in the near future. Wainwright speculates that the starting base for a potential new all-time high could be around $110,000. This could set the stage for Bitcoin to break its previous record, especially given the growing institutional adoption and interest in the cryptocurrency.

However, predicting the exact timing and magnitude of Bitcoin’s next move is challenging. Wainwright suggests that one key metric to watch is the number of days during a rolling 60-day period when Bitcoin hits a new all-time high. This can provide insights into whether the market is gearing up for another parabolic rally.

Despite the challenges and negative market sentiment in the short term, Fidelity’s research suggests that Bitcoin’s acceleration phase is not over yet. The cryptocurrency’s fundamentals, bolstered by increasing institutional interest, remain strong. As a result, Bitcoin’s price could be poised for another surge, potentially setting the stage for a new all-time high.

In conclusion, while Bitcoin faces some short-term volatility, Fidelity’s research indicates that the broader market cycle still points to a period of bullish momentum. Investors and analysts will be closely monitoring these developments, as they could provide important insights into Bitcoin’s trajectory in the coming months.