Bitcoin News Today: Bitcoin Nears $114,000 as Historical Buy Zones Signal Early Cycle Stage

Bitcoin has long been characterized by its cyclical nature, with significant price rallies often emerging from deeply discounted “buy zones.” These historical opportunities, rooted in uncertainty and skepticism, have repeatedly proven to be inflection points for the asset. With Bitcoin currently hovering near $114,000, market participants are once again evaluating whether this is a top or the next early entry point [1].

The earliest opportunity came in 2009–2010 when Bitcoin was worthless. Transactions occurred at a fraction of a cent, with the first known exchange involving 5,050 BTC for $5.02. In 2010, 10,000 BTC was traded for two pizzas, valuing Bitcoin at roughly $0.0041. These early adopters weren’t chasing returns—they were betting on a decentralized financial system [1].

By 2011, Bitcoin reached $1, marking its first psychological milestone. Although the price surged to $30 before collapsing, the underlying thesis for Bitcoin remained intact for those who held through the volatility. Satoshi’s disappearance and the rise of Mt. Gox underscored the project's decentralization, which was both its strength and a point of vulnerability [1].

The 2014–2015 period was defined by the collapse of Mt. Gox, then handling 70% of global Bitcoin trades. After losing 850,000 BTC, the price plummeted from $1,100 to below $300. Despite the media declaring Bitcoin dead, the network continued to produce blocks. Investors who understood the distinction between centralized infrastructure and the decentralized protocol saw one of the most misunderstood crashes in financial history [1].

The 2018–2019 bear market followed the implosion of the ICO mania. Bitcoin bottomed at $3,200 in December 2018, with most market participants exiting. However, beneath the surface, critical developments were underway—custody improvements, the Lightning Network, and institutional interest. For those who stacked during this time, the reward was significant [1].

March 2020 brought the global pandemic, which saw Bitcoin drop over 50% in a single day. The crash mirrored the broader financial markets, with Bitcoin hitting $4,000. However, this moment also marked the beginning of institutional adoption, led by MicroStrategy’s $250 million BTC purchase. This move was a catalyst, with other firms like Square and Tesla soon following suit [1].

Late 2022 brought another major crisis with the collapse of FTX. Sam Bankman-Fried’s downfall led to a 30% drop in Bitcoin, which fell to $15,500. While the bear market had already been in progress, the FTX incident accelerated the downturn. Investors who recognized the underlying strength of the Bitcoin protocol, rather than the risks of centralized platforms, positioned themselves for a rebound [1].

January 2024 marked another turning point with the approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). This regulatory green light unlocked billions in institutional capital, with BlackRock, Fidelity, and Franklin Templeton entering the market. Retail investors who bought before the ETF approval, often under $50,000, were ahead of the curve. These investors understood that ETFs did not change Bitcoin’s fundamentals but expanded access to new capital [1].

Today, with Bitcoin near $114,000, many wonder if the rally is over. According to the Power Law Theory (PLT)—a mathematical model that maps Bitcoin’s price to its age, adoption, and network effect—Bitcoin is still early in its current cycle. The PLT formula suggests that with Bitcoin in its 16th year, it is positioned for continued growth, potentially 10x over the next eight years [1].

This theory, along with other long-term models like stock-to-flow and Metcalfe’s Law, reinforces the view that Bitcoin is not at its peak. For investors with a multi-decade horizon, the current price represents an opportunity rather than a barrier. Now, as in previous cycles, is a good time to buy [1].

Source: [1] Bitcoin Price: The 7 Buy Zones That Preceded Big Rallies — Is The Next One Already Here? (https://bitcoinmagazine.com/markets/bitcoin-price-the-7-buy-zones-that-preceded-big-rallies)