According to history, bitcoin is expected to reach a new all-time high this year, the analysis states

A study analysis published by CCData on Tuesday suggests that Bitcoin has not yet hit the peak of its current appreciation cycle and is set to surpass its all-time high this year.

After reaching an all-time high of more than $73,700 in March, the price of bitcoin has been fluctuating between about $59,000 and $72,000.

The authorization and introduction of the spot bitcoin exchange-traded funds, or ETFs, in the United States in January played a significant role in propelling the market to its all-time high in March. CCData indicates that they have drawn net inflows totaling approximately $14.41 billion thus far.

ETFs give investors the option to purchase a bitcoin tracking product without actually holding the underlying cryptocurrency. Advocates of cryptocurrency claim that this has made it simpler for larger institutional investors to participate in the asset class and helped legitimize it.

The term "cycle" for bitcoin describes the time frame in which the virtual currency rises to a fresh all-time high before plunging once more into a bear market, or "crypto winter." Since the introduction of bitcoin, three of these cycles have already finished, and they have generally followed a similar pattern.

This has revolved around an occurrence known as the halving, wherein the miners' payout is halved, thereby decreasing the amount of bitcoin available for purchase.

Halving often takes place many months prior to bitcoin reaching its highest point of the cycle. There has been a difference in this cycle. The recent record high that Bitcoin reached before halving was a result of the optimism surrounding ETFs in the United States.

Since bitcoin has been trading in a range following its peak, many have questioned if the current cycle has hit its peak.Those historical timelines haven't passed yet because the most recent halving of bitcoin occurred on April 19 of current year.

According to CCData's analysis, which looked at past bitcoin price fluctuations, it may rise to new heights. "Before producing a cycle top, with each halving experiencing a longer cycle than the one prior, due to maturation of the asset class and lowered volatility," the data and research firm stated that historical trends have shown that the halving event has always preceded a period of price expansion. This period of price expansion can last anywhere from 366 days to 548 days.