Author: Big Smokey, CoinTelegraph; Translated by: Tao Zhu, Golden Finance

A recent report by Fidelity Digital Assets questioned whether Bitcoin’s price has experienced a cyclical “explosive rise” or whether BTC is on the brink of another “acceleration stage.”

Fidelity analyst Zack Wainwright said Bitcoin’s acceleration phase is characterized by “high volatility and high profits”, similar to the price trend when BTC broke through $20,000 in December 2020.

While Bitcoin’s year-to-date return reflects a loss of 11.4%, and the asset has dropped nearly 25% from its all-time high, Wainwright said the performance after the recent acceleration phase is consistent with the average downtrend of BTC compared to previous market cycles.

After the acceleration phase, Bitcoin's historic decline. Source: Fidelity Digital Assets Research

Winwright believes that Bitcoin is still in an acceleration phase, but is approaching the end of the cycle, as March 3 represents the 232nd day of the cycle. The previous peak lasts slightly longer and then enters the correction period.

“The acceleration phases of 2010-2011, 2015 and 2017 peaked on Days 244, 261 and 280, respectively, which suggests that the phases of each cycle are slightly long.”

The price of Bitcoin has hovered below $100,000 since February 21, and most of the momentum and positive sentiment that constitutes the “Trump deal” has dissipated, replaced by volatility triggered by the tariff war and market concerns that the U.S. may fall into a recession.

Despite these unanswered factors and their negative impact on the daily price of Bitcoin, large entities continue to increase their BTC inventory.

On March 31, Strategy CEO Michael Saylor announced that the company had acquired 22,048 BTC ($1.92 billion) at an average price of $86,969 per Bitcoin. On the same day, Bitcoin miner MARA revealed plans to sell up to $2 billion in stock to acquire more BTC “from time to time.”

Followed by the footsteps of large-cap companies, Japanese company Metaplanet issued 2 billion yen ($13.3 million) bonds on March 31 to buy more bitcoins, while the biggest news for March comes from GameStopAnnounced the issuance of $1.3 billion in convertible notes, a portion of which can be used to purchase Bitcoin.

Recently, the purchase and purchase intention statements of several international and US listed companies have shown that they have adopted a price-independent approach when accumulating BTC as reserve assets and highlights positive expectations of future prices by institutional investors.

While it is difficult to determine the impact of institutional investors on BTC prices, Wainwright said one indicator to be aware of is the number of days when cryptocurrencies hit all-time highs over 60 consecutive days. Wainwright released the following chart and stated:

"Bitcoin usually experiences two major gains in its previous acceleration phase, the first after the election. If Bitcoin is about to hit an all-time high, it will start at nearly $110,000."

Bitcoin's highest number of days in history (rolling 60 days). Source: Fidelity Digital Assets Research