As analysts examine the Bitcoin market, they highlight traditional cycles, yet modern economic conditions raise questions about their relevance.
Traditional Bitcoin Model
For years, crypto investors have relied on the four-year cycle anchored around Bitcoin’s halving events. The theory posits that every four years, the supply of Bitcoin is halved, triggering price surges, peaks, declines, and slow recoveries.
New Market Perspective
Analyst James Check stated in an interview with Cointelegraph that the tidy frameworks defining Bitcoin's behavior are becoming less useful in today's macro-driven environment influenced by institutional investors. He argues that Bitcoin is now driven more by macroeconomic conditions and investor psychology than by predictable cycles or halving dates.
Critical Confidence Zone
Check also pointed out that the $70K–$75K range is a critical confidence zone for the Bitcoin market. He emphasizes that thinking in terms of scenarios rather than predictions is key for investors' long-term success.
This reevaluated approach to Bitcoin analysis may assist investors in navigating the complex and changing economic landscape where traditional cycles are losing their significance.
