Bitcoin (BTC) CAGR Jumps From 7% to 31% as Price Rallies 46%

Bitcoin's strong performance in April and May has reignited hopes for a major bullish breakout. From April 9 to May 22, the Bitcoin price surged by 46.32%

Crypto analyst Axel Adler Jr has forecast that Bitcoin (BTC) could hit a possible price target of $168,000 by October 2025 if momentum in the futures market and leverage continues.

Discussing the rapid appreciation in BTC’s 4-year Compound Annual Growth Rate (CAGR), which shot up from 7% in April to 31% in June, Adler said that this signals a strong shift in the long-term trend as a result of the recent price recovery.

From April 9 to May 22, the Bitcoin price surged by 46.32%, including an 18.48% rally between May 5 and 22. The price recovery has also pushed its CAGR higher, which signals renewed market optimism.

Discussing the technical analysis of Bitcoin’s price chart, crypto analyst Ben Armstrong observed that the cryptocurrency is now attempting to break out of a "triangle pattern" on the 3W chart.

According to the analyst, this breakout could propel Bitcoin towards the $90,000 price level, signaling a significant bullish move.

"We’re now testing the apex of the triangle, and if we can break out of this pattern, I think we’ll move towards that $90,000 price point," said Ben Armstrong.

"This breakout would be a continuation of the strong bullish momentum that we've seen in recent months."

However, Adler pointed out that despite the CAGR increase, it’s still lower than historical bull market peaks, suggesting there's potential for further growth.

"This sharp rebound shows how quickly the long-term trend can shift when strong buyer momentum enters the market," he stated.

"But it's worth noting that even with this move higher, the 4-year CAGR is still below the levels we saw during the last major bull market in 2021. This indicates that there's still room for the long-term trend to become even more bullish."

To adjust for volatility and highlight risk-adjusted returns, X user Manu suggested dividing CAGR by the standard deviation, rendering a more clear view of market performance.

Adler agreed with the approach, but also emphasized another critical point.

"The real inflection point comes when investors start taking profits based on expected returns," he added.

According to him, the risk of a bear market grows once BTC trading volume crosses 1 million coins, as large-scale profit-taking can disrupt the supply-demand balance.