Bitcoin Hits New All-Time High at $112,000
Bitcoin Surges to $112,000 and Joins the World’s Top 5 Most Valuable Assets
On May 22, 2025, Bitcoin (BTC) achieved a new all-time high of nearly $112,000, pushing its total market capitalization to about $2.2 trillion. This valuation places Bitcoin among the five most valuable assets globally, trailing only behind giants like Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Gold.
This milestone fuels the belief among many that Bitcoin is a must-have investment, yet historical trends suggest caution. An in-depth look at Bitcoin’s price behavior over the past 16 years reveals a distinctive cyclical pattern characterized by booms and busts repeating roughly every four years.
Highlights:
Bitcoin hit $112,000 on May 22, 2025.
Market cap reaches $2.2 trillion.
Ranks among top five global assets by value.
Historical price cycles follow four-year patterns.
The Four-Year Bitcoin Cycle and Its Phases
Bitcoin’s price movements tend to follow well-defined four-year cycles, anchored around the pivotal event known as the Bitcoin halving — a scheduled reduction in the rate at which new Bitcoins are created, occurring every four years.
Each cycle consists of four key phases:
Accumulation Phase – Gradual steady buying.
Growth Phase – Rapid price appreciation.
Bubble Phase – Exuberant buying, often driven by hype.
Crash Phase – Sharp correction or price collapse.
The halving event typically signals the transition from the growth phase into the bubble phase, causing increased demand and price surges.
Given the most recent halving occurred in April 2024, Bitcoin is now more than 12 months into its current bubble phase, which historically lasts between 12 to 18 months. This timing raises caution, as historically, the bubble phase is often followed by significant price corrections.
Highlights:
Bitcoin operates in roughly four-year cycles.
Halving events mark the start of bubble phases.
Current bubble phase started April 2024, now over 12 months in.
Bubble phases historically last 12–18 months.
Comparing Bitcoin’s 2025 Performance With 2021
The price action in 2025 closely mirrors Bitcoin’s previous cycle during 2021. Back then, Bitcoin’s halving in May 2020 saw the price rise from about $10,000 to $60,000 within 12 months, followed by a sudden crash to $30,000. Despite the drop, Bitcoin recovered strongly to hit a new high of $69,000 later that year.
However, the rally was short-lived as Bitcoin experienced another severe decline, falling to $16,000 by November 2022. This marked the start of the next cycle, where accumulation and growth resumed through 2023 and early 2024. The current year saw Bitcoin hitting a new high in January 2025, a pullback to around $75,000, and then rallying to the latest peak of $112,000 in May 2025.
The uncanny similarity between these cycles suggests that, although volatility is high, the possibility of a repeat pattern involving a sharp correction followed by renewed highs remains strong.
Highlights:
2025 price action parallels 2021 cycle.
Previous cycle: rise to $60K, crash to $30K, new high at $69K.
Current cycle: Jan 2025 high, dip to $75K, May 2025 peak.
Historical data points to possible repeat volatility.
What Could Happen Next? Navigating Bitcoin’s Volatility
Predicting Bitcoin’s short-term price movements is notoriously difficult. After hitting all-time highs, Bitcoin often experiences heightened volatility, with large intraday swings making trading and investing more challenging.
Market sentiment is sharply divided:
Optimists predict Bitcoin soaring to $200,000 or beyond.
Skeptics warn of a steep correction back to $69,000 or lower.
The only consistent takeaway is that volatility will remain elevated as Bitcoin consolidates its gains or corrects.
For long-term investors, even if Bitcoin follows the historical cycle pattern and undergoes a crash, the four-year cycle suggests there could be another opportunity to capitalize on further gains after the correction phase completes.
Highlights:
Post-all-time-high phase usually brings increased volatility.
Price predictions vary widely: from $69,000 to $200,000.
Volatility is the only predictable aspect near new highs.
Long-term holders may have to wait through volatility for future gains.
