Bitcoin Rainbow Chart hints at $500K peak this cycle – Can it happen?

• Institutional adoption and ETF inflows fueled Bitcoin’s rise toward a potential supercycle.
• Favorable macro trends and network growth aligned to support Bitcoin’s extended trajectory.

Bitcoin’s [BTC] rainbow chart has reignited hopes of a $500K price peak in this cycle. Recent trends suggested a longer, more extended trajectory than previous runs.

Unlike the last cycle, which stalled before reaching the “extreme phase,” current developments showed stronger momentum.

Since November, critical indicators and evolving market dynamics have bolstered the case for Bitcoin to chart new highs and possibly hit $500k. Here’s what could drive Bitcoin to its next all-time high.

Crypto Bitcoin: What could cause the possible surge?

Bitcoin’s developments since November highlighted its growing legitimacy as a financial asset. Sovereign wealth and pension funds have increased their exposure.

BlackRock’s iShares IBIT Bitcoin ETF attracted over $17 billion in inflows, showcasing surging institutional demand.

Spot BTC ETFs globally have also driven liquidity, boosting accessibility and bridging traditional finance with crypto.

Technological advancements like the Lightning Network are improving Bitcoin’s utility. Faster, low-cost transactions are strengthening its adoption for practical use cases.

Meanwhile, macroeconomic conditions, such as a weakening U.S. dollar and inflation concerns, have reinforced Bitcoin’s role as a decentralized store of value.

With regulatory clarity, technical progress, and favorable macro trends aligning, Bitcoin appears set for significant growth. These factors fuel speculation about a $500K supercycle target.