The Traditional Bitcoin Price Cycle Is Losing Its Impact

The traditional four-year Bitcoin price cycle, which followed halving events, is losing its impact across the market.

The narrative of a four-year Bitcoin price cycle, traditionally observed to follow halving events, is losing its impact across the cryptocurrency market.

Analyst Ash Crypto highlighted that the historical Bitcoin cycle used to contain four distinct stages: a bear market, followed by an accumulation, then a bull market, and finally, the euphoria phase. However, recent market trends suggest that the Bitcoin price cycle is becoming less predictable, while liquidity factors are emerging as stronger determinants of its price movements.

“IS THE 4-YEAR CYCLE DEAD, OR IS IT ALL ABOUT LIQUIDITY?The traditional 4-year crypto cycle tied to Bitcoin (BTC) halvings looks like it is becoming irrelevant.Historically, the cycle included:👉 Bear market👉 Accumulation phase👉 Bull market👉 Euphoria phaseThis Cycle is… pic.twitter.com/xLasJ3cWOp

The cryptocurrency market typically moves following the schedule of halving events, which creates significant market transitions. The bear market transitions to an accumulation phase before the bull market emerges, followed by an extreme growth phase. The anticipated post-halving bull market has failed to materialize yet one year since the Bitcoin halving event occurred. Bitcoin has outpaced other cryptocurrencies because investment flows from different sources.

Bitcoin price has increasingly followed the investment trends from institutional stakeholders. Retail investors, who previously drove the demand for altcoins, are now concentrating their attention on Bitcoin, alongside the emerging institutional support for Bitcoin ETFs and increased involvement from institutional investors. Bitcoin shows superior market performance compared to other cryptocurrencies due to a shift in market dynamics.

Liquidity Drives Bitcoin’s Price Movements

The movements in Bitcoin’s price are mainly driven by liquidity. Global liquidity has surged to unprecedented levels throughout the first quarter by adding $5.5 billion, which could reach a $12 billion increase for the entire year. Bitcoin functions as the principal asset class in which crypto market participants place their new capital inflow. The market conditions will experience substantial alterations due to this incoming liquidity flow, regardless of traditional cycle patterns.

The M2 money supply leads Bitcoin price movements by 10–12 weeks, and Bitcoin reacts to rising global liquidity with a strong upward shift. The market data supports the notion that liquidity functions as the primary market influence, rather than being driven by periodic cycles.

Current market dynamics indicate a shift away from previous predictable patterns. The upcoming price behavior of Bitcoin is likely to be influenced by global liquidity patterns and institutional funding activity rather than by recurring four-year cycles. The growing liquidity will drive Bitcoin prices upward, thus proving that external factors matter more than halving cycles for market performance.”

The post Is The 4-Year Cycle Dead, Or Is It All About Liquidity? appeared first on .