Bitcoin’s four-year cycle is influenced by halving events, which reduce miner block rewards by 50% every four years. This creates supply-demand pressures, potentially pushing prices higher. The Stock-to-Flow Model visualizes this impact. We are currently midway through this cycle, which means we may enter a period of exponential gains.
Analyzing market behavior, investor sentiment, and global liquidity also shows similarities across each cycle, with emotional peaks and valleys repeating regularly. These patterns offer a roadmap for investors to anticipate and adapt to the market. However, data-driven approaches incorporating on-chain metrics, liquidity analysis, and real-time investor sentiment can help investors better respond to changing conditions.
