Key Points
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Bitcoin may have reached its bear market bottom, according to Cathie Wood of Ark Invest.
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In the previous Bitcoin bear market, Bitcoin doubled in value immediately after collapsing by 64%.
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While Bitcoin faces an uphill battle to hit $1 million anytime soon, it could easily regain the $125,000 price level next year.
Right now, Bitcoin(CRYPTO: BTC) is trading for just $64,000, which marks a nearly 50% decline from its all-time high of $126,000 in October 2025.
But there’s reason to think that Bitcoin is about to go on another of its epic rallies by the end of this year. As a result, I predict Bitcoin will double in value by the end of 2027.
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The “bottom” is in for Bitcoin
Crypto investors have been waiting for months for the “bottom” in Bitcoin. And now high-profile investor Cathie Wood of Ark Invest thinks it could finally be here. At the beginning of July, she suggested that Bitcoin is finally in recovery mode. The recovery won’t be a straight line up, says Wood. Instead, it will be “volatile” and unpredictable.
Image source: Getty Images.
Most investors can live with volatile and unpredictable, as long as it leads to monster gains for Bitcoin. In the past, Bitcoin has shown an uncanny ability to turn things around in a way that catches investors off guard.
In 2022, for example, Bitcoin sank by 64% and dipped as low as $16,000. Many investors thought that was the end for Bitcoin, and some even thought it might go all the way to zero. But it didn’t. In 2023, Bitcoin delivered a 156% return to investors. In 2024, Bitcoin returned 121% to investors. That’s what led to Bitcoin soaring to the sky-high price of $126,000 in 2025.
How does Bitcoin double in value?
Already, inflows appear to be returning to the spot Bitcoin ETFs. That’s a positive sign, given that massive Bitcoin ETF outflows have been a theme throughout the first half of 2026. If institutional money really is indeed returning to Bitcoin, that would at least put a floor under the price of Bitcoin.
Moreover, given the escalation of tensions in the Middle East, Bitcoin could once again become a “store of value” for institutional investors. During previous periods of economic and geopolitical crisis, some investors have turned to Bitcoin. If that happens, be prepared for Bitcoin’s “digital gold” investment thesis to reemerge.
Bitcoin could also benefit from increased regulatory clarity around crypto. Just as new stablecoin legislation gave the entire crypto market a boost last year, the new Digital Asset Market Clarity Act (“Clarity Act”) could give the crypto market a boost this year. Bitcoin, as the market bellwether, would be a likely beneficiary.
At the same time, U.S. government officials are talking up the prospects of a bigger, better Strategic Bitcoin Reserve. This is a big “if,” but if the U.S. government actually starts buying new Bitcoin for the reserve, that would provide a tremendous positive jolt to the price of Bitcoin.
What’s the most realistic scenario for Bitcoin?
Obviously, Bitcoin doubling in value to hit a price of $125,000 or higher remains a long-shot possibility. However, a growing number of analysts are now putting out bullish price targets for Bitcoin. Standard Chartered, for example, still thinks Bitcoin can hit $100,000 by the end of this year.
That being said, take heed of Cathie Wood’s words. It will be a volatile climb upward, and not a smooth trajectory for Bitcoin. If you’re planning to invest in Bitcoin, buckle your seatbelt.
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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.