Bitcoin Bear Market May Be Ending as Multiple Indicators Turn Bullish

Anthony J. Pompliano, founder and CEO of ProCap Financial, said multiple indicators suggest Bitcoin may be entering a new bull market after a difficult year. According to Foresight News, he argued that the bear market is likely over and that the next 18-24 months could bring stronger returns. Pompliano cited five charts to support his view. He pointed to a relationship between Bitcoin mining electricity costs and the relative strength index, saying both have historically bottomed together. He also noted that Bitcoin's correlation with gold has reached a record high, while Scott Bessent's recent pledge to expand government fiscal spending has renewed trades tied to currency debasement. He added that Bitcoin's price has historically moved in line with broad money supply M2, even though the two have recently diverged as M2 expanded and Bitcoin fell. In his view, past gaps between the two have eventually narrowed through Bitcoin moving higher rather than M2 slowing. Pompliano also highlighted a chart from R89 Capital showing Bitcoin trading in an upward channel on the 4-hour chart, which the firm viewed as a bullish signal and a setup for a move toward $90,000. He further cited a Bloomberg chart shared by Jeff John Robert showing that most of Bitcoin's annual gains have come from a small number of strong trading days, making frequent market timing risky. He concluded that this bear market has been shorter and less severe than previous cycles, and said a new bull market has already begun. He warned that volatility will remain high, but said investors who understand Bitcoin and hold through the swings may see substantial returns.