Investors have warmed up to Bitcoin, propelling its price since the middle of August.
Tighter monetary policy and the AI boom are possible headwinds investors should be aware of.
Historical data related to Bitcoin and the stock market support a bullish outlook.
Investors will find it challenging to identify a better-performing asset than Bitcoin (CRYPTO: BTC). Over the past 15 years, the world's first cryptocurrency has skyrocketed more than 1,600,000% (as of Sept. 29). A $10,000 investment made back then would be worth nearly $164 million today.
But the volatility is what grabs headlines. At the low point in 2026 on July 1, Bitcoin was trading 53% off its peak. It has bounced back nicely, now trading at roughly $84,171.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The bulls are starting to make some noise, wondering whether the bear market is in the past. Can Bitcoin rise 19% to get to $100,000 by the end of the year?
Image source: Getty Images.
Bitcoin doesn't operate in a vacuum. It's a global financial asset. Consequently, it can be influenced by a variety of factors. Macroeconomic headwinds are one of them.
The Federal Reserve recently raised its benchmark federal funds rate for the first time in over three years, with more hikes potentially on the table. Chairman Kevin Warsh has expressed that his focus is on controlling inflation, which has been spurred by higher energy prices this year due to the Middle East conflict. This could present a headwind.
All else being equal, riskier assets like Bitcoin perform better during an accommodative monetary backdrop. Lower interest rates incentivize greater borrowing by consumers and companies. And they push investors toward financial instruments that might not pay income now, but that promise greater capital appreciation in the future.
Artificial intelligence (AI) could be another headwind. While Bitcoin continues to slowly establish itself as a prominent investment asset and potential payment mechanism, it mirrors other cryptocurrencies, as it's most exposed to shifting market sentiment. The AI boom has captivated the investment community, diverting attention away from Bitcoin. And so much capital has gone into AI stocks that might otherwise have flowed into digital assets.
Even considering those headwinds, I think it's likely that Bitcoin will reach $100,000 before 2026 ends. That six-figure target is only 19% higher than the current price. That's a small jump for such a high-octane asset. It wouldn't be at all surprising to see crypto maintain its current momentum, as it is known to deliver huge gains.
Bitcoin's price follows a four-year cycle, with roughly 48 months between bull-market highs and bear-market lows. The last bear-market low was established in November 2022. If this trend holds, it suggests there's a good chance that Bitcoin's bear market is over and that the march higher has begun.
And according to Carson Group's Ryan Detrick, October and November during a midterm election year are the S&P 500 index's two highest-returning months. Since the stock market and Bitcoin have a strong positive correlation, this bodes well for the latter's prospects in the very near term. This is another data point that supports investor optimism.
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 1, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.