Recent analysis indicates that Bitcoin's price may still be tracking its historic four-year cycle, while institutional demand has influenced the market.
Cyclical Trends in Bitcoin
Analytical firm Glassnode states that current trends in the Bitcoin market echo previously observed cycles. According to the firm, bitcoin price behavior in historical perspective resembles previous cycles, and long-term holders—investors who hold coins for over 155 days—are taking profits at levels similar to past euphoric stages.
Weakening Demand for Bitcoin
Glassnode also notes signs of weakening demand for Bitcoin. Spot Bitcoin ETFs have seen outflows of around $975 million over the last four trading sessions. At the same time, the price of Bitcoin has retreated 8.3% from its mid-August record of $124,128 to approximately $113,940. This cooling appetite has pushed traders toward speculative bets.
Debates on the Relevance of Bitcoin Cycles
Despite observed cycles, not all experts agree that the current Bitcoin cycle remains the dominant force. Some researchers and investors argue that growing institutional demand, particularly through the treasuries of public companies and ETFs, could alter the timeline. Investor Jason Williams noted that the top 100 treasury companies now hold close to one million Bitcoin, which he considers a sign of a structural difference in the current cycle.
While Bitcoin continues to follow familiar cycles, expert opinions are divided on the influence of institutional demand on future price trends.
