Bitcoin’s long-term growth continues to be shaped by economics, technology, and global investor behaviour.
One of the strongest foundations supporting its long-range outlook is its mathematically limited supply of only 21 million coins, combined with predictable halvings that reduce new issuance over time.
This structure has historically pushed the market higher whenever demand increases. At the same time, institutional adoption has accelerated, improving market depth and reducing volatility.
As the shutdown in the United States ends and liquidity returns, Bitcoin has regained its strength after several weeks of decline.
Why Bitcoin’s Structure and Adoption Support Long-Term Growth
Bitcoin’s supply schedule sets it apart from traditional currencies. Every four years, the reward given to miners is cut in half, slowing new supply and creating what many describe as a supply shock.
The effect is simple. With fewer coins entering the market, prices tend to rise if demand stays the same or increases. This predictable pattern has shaped every major cycle so far.
Adoption has also expanded far beyond early crypto communities. Major banks, hedge funds, corporations, and even governments now hold Bitcoin or integrate it into financial products.
This institutionalisation strengthens legitimacy and improves liquidity, reducing volatility and shifting focus towards long-term positioning instead of short-term speculation. Bitcoin ETFs and clearer regulations have also made it easier for large investors to participate.
Bitcoin’s appeal as a store of value continues to grow in an environment defined by inflation risks, geopolitical uncertainty, and reduced confidence in traditional currencies.
Gold has filled this role for decades, yet Bitcoin offers a portable, transferable, globally accessible digital alternative. Younger generations in particular show a strong preference for digital assets, reinforcing long-term demand.
The underlying network remains exceptionally strong. Millions of people use and build on the Bitcoin network every day, and no other cryptocurrency has matched its combination of decentralisation, security, and brand recognition. This reinforces Bitcoin’s position as the leading digital store of value.
Market Recovery, Liquidity Return and Cathie Wood’s Bullish Target
The crypto market finally rebounded this week after four consecutive weeks of decline. Bitcoin climbed back above the $90,000 psychological area on Wednesday, a welcome development for Bitcoin ETF holders.
With Bitcoin now trading above the $59,000 average cost basis for ETF buyers, many of them returned to profit.
Cathie Wood, the CEO and CIO of ARK Invest, reaffirmed her long-term view, stating she is still confident that Bitcoin could eventually reach a $1.5M price target. Her optimism aligns with improving liquidity conditions after the United States government shutdown ended.
The recovery also followed a sharp increase in expectations for United States rate cuts. The probability of a 25 basis point cut at the Federal Reserve meeting on 10 December rose from 39% to 85% within one week, according to the CME FedWatch tool.
Both stocks and crypto benefited as liquidity improved and monetary policy became more supportive.
Much of this improvement comes from returning liquidity. Around $70B has already flowed back into markets since the shutdown ended, with another $300B expected in the next few weeks as the Treasury General Account normalises.
Another catalyst will arrive on 1 December when the Federal Reserve is projected to end its quantitative tightening programme and return to quantitative easing.
This shift means the central bank will begin purchasing bonds again in order to lower borrowing costs and support economic growth.
Bitcoin dominance often rises during market stress because investors tend to rotate out of riskier altcoins. This pattern was visible in previous corrections, such as the move from February to May during the tariff-related downturn, when dominance increased from 58% to 65%.
A similar rise occurred in August 2024 during the yen carry trade unwind, with dominance moving from 56% to 60% by November.
However, the current correction behaved differently. Even though Bitcoin recovered to $90,000 in early November, dominance dropped from 61% to 58.5%.
It has since recovered to slightly over 59%, yet in most risk-off periods, dominance rises far more sharply. This time, Bitcoin fell harder than the rest of the market.
The recent decline also played out faster. It took 47 days to move from the top to the bottom, compared to 77 days during the tariff-related downturn and 146 days during the 2024 correction. This rapid drop made the market more fearful.
When viewed together, the weaker dominance and faster downward move suggest that this correction did not follow the same structure as the previous cycle.
With Bitcoin now nearing the end of its usual four-year pattern, the key question is whether the declining dominance is a warning sign of further weakness ahead.
Conclusion
Bitcoin’s recent rebound occurred as liquidity improved, expectations for rate cuts increased, and the United States moved past its government shutdown. Cathie Wood continues to hold a long-term target of $1.5M, supported by Bitcoin’s fixed supply and expanding institutional adoption.
However, the unusual behaviour of Bitcoin dominance during the recent decline and the pace of the correction raise important questions about market structure.
As the end of the four-year cycle approaches, investors should remain cautious and recognise that movements in liquidity and macroeconomic policy will likely continue to guide Bitcoin’s direction.