What happened?
The traditional 4-year cycle of Bitcoin price movements, driven by halving events, is being reconsidered. Analysts suggest that the predictable pattern of price spikes followed by crashes may no longer hold true. Pierre Rochard and other industry experts argue that the impact of halving events has diminished due to changes in Bitcoin’s market dynamics.
Who does this affect?
This shift in the Bitcoin cycle affects traders, investors, and institutions involved in cryptocurrency markets. Retail traders can no longer rely on the straightforward 4-year cycle for planning their investments. Institutional investors and macroeconomic conditions now play a more significant role in influencing Bitcoin prices.
Why does this matter?
The end of Bitcoin’s 4-year cycle could lead to more complex market dynamics, impacting strategies for investing and trading. The focus may shift more towards liquidity waves, institutional inflows, and broader market trends rather than just supply shocks from halvings. This change challenges existing investment strategies and could redefine how market participants approach Bitcoin trading and investment.