Increased Momentum for Bitcoin ETFs in South Korea Amid Regulatory Delays

Is Bitcoin's Four-Year Cycle Officially Over? Insights from 2025's Performance

Update The Changing Landscape of Bitcoin's Market Dynamics The narrative surrounding Bitcoin's four-year cycle has always danced to the rhythm of halving events, which historically cut the supply of newly minted coins in half, triggering explosive price surges followed by steep corrections. As we close the chapter on 2025, however, a new storyline is emerging: this time, Bitcoin has failed to adhere to its traditional post-halving script. Following the April 2024 halving, enthusiasts anticipated the familiar ascent that characterized 2012, 2016, and 2020, when each subsequent year after a halving brought significant gains. Yet, as 2025 concludes, Bitcoin finds itself trading lower than it began, marking an unprecedented deviation in its historical pattern. This raises a provocative question: Is the four-year cycle officially over? Institutional Influence: The Game Changer In previous cycles, retail investors played a dominant role, driving speculative trading patterns. This shifted dramatically in 2024 with the introduction of Bitcoin spot ETFs, providing institutional investors—such as pension funds and asset managers—access to the crypto market. These entities, known for their long-term strategies, have begun to stabilize Bitcoin's price by responding differently than retail investors, who typically react to hype and market sentiment. As retail-driven volatility gives way to steadier institutional demand, the factors influencing Bitcoin's price have evolved. Analysts like Armando Pantoja argue that Bitcoin now reacts more to macroeconomic trends and liquidity conditions rather than the halving schedule alone. With nearly 94% of Bitcoin already mined, the traditional influence of supply shocks from halvings appears to diminish. Macroeconomic Trends vs. Traditional Market Cycles The emergence of macroeconomic influences cannot be overstated. Unlike earlier cycles where Bitcoin's price closely correlated with its halving, the 2024 cycle has been marked by tighter integration with global liquidity and economic conditions. For instance, during the 2022 interest rate hike cycle, Bitcoin fell alongside equities, signaling a shift toward being treated as a macro asset. As global liquidity conditions improve starting from late 2023 into 2025, the resilience of Bitcoin's price will hinge on the broader economic landscape. Proponents of an extended cycle argue that market sentiment no longer operates on fixed time frames but is now influenced by dynamic external factors, suggesting that Bitcoin may find new peaks in 2026 and beyond. Counterarguments: The Cycle Lives On Despite the prevailing sentiment of a broken four-year cycle, some analysts maintain the argument that fundamentally, the cycle remains—but its manifestations have changed. Markus Thielen of 10x Research posits that seasoned market participants will discern a slower but more sustainable growth pattern, allowing Bitcoin's value to appreciate even as volatility decreases. Echoing these sentiments, risk assets like Bitcoin are increasingly influenced by economic conditions rather than factor-driven cycles. While historical patterns have provided valuable blueprints for traders, the reality is that the market has transitioned toward a new phase driven by diversified investment strategies and macroeconomic realities. The emphasis has begun to shift from speculation driven by supply scarcity to a more organic maturation of Bitcoin as an asset class. The Future of Bitcoin: Predictions and Insights Looking ahead, what’s clear is that navigating Bitcoin's market will require a robust understanding of both its traditional cycles and its new macroeconomic narrative. If institutional capital continues to mesh with evolving economic factors, we may witness a radical evolution in how Bitcoin's cycles are defined. As Bitcoin moves toward becoming a mainstream asset with impacts from global financial shifts, investors and market watchers will need to adapt their strategies. The potential for Bitcoin's cycle to extend might offer quieter but steadier growth, aligning with broader economic cycles rather than the halving schedule that once dictated price fluctuations. In conclusion, whether the four-year cycle is dead or merely evolving is a question that continues to stir debate. Investors must remain alert to both historical patterns and current market sentiments to successfully navigate this complex and rapidly changing landscape.