Pierre Rochard, CEO of Bitcoin Bond Company, expresses the view that the traditional four-year cycles of Bitcoin are no longer functioning, a sentiment echoed by CryptoQuant CEO Ki Young Ju.
The Issue with Halving
According to Rochard, halvings no longer have a substantial impact on the cryptocurrency's supply. Previously, halving events were seen as major drivers of bullish and bearish cycles, as the reduction of block rewards significantly lowered new supply. However, now that 95% of Bitcoin's total supply has already been mined, daily issuance does not significantly influence trading.
Institutional Investors Take the Lead
Moreover, demand for Bitcoin now primarily comes from institutional investors rather than speculative retail traders. Exchange-traded funds (ETFs) and corporate treasuries are key contributors to rising Bitcoin prices.
The New Reality of the Crypto Market
Rochard notes that the majority of new coins sold now come from large holders rather than miners. This indicates that Bitcoin prices are at the mercy of the personal decisions of these large investors. Recently, a long-time holder sold around 80,000 Bitcoins, highlighting this shift.
Thus, the transformation of supply and demand dynamics in the Bitcoin market, along with the changing nature of its cycles, underscores a new phase of cryptocurrency development that requires a reevaluation of traditional strategies and analysis.
