Experts now suggest that Bitcoin’s traditional four-year halving cycle has concluded, with its momentum largely sustained by institutional backing.
K33 Research, a prominent analysis firm, asserts that the era of the 4-year halving cycle for Bitcoin is over and anticipates the continuation of a structural bull market.
The Block reports that K33 Research analysts believe factors like institutional adoption, changes in macroeconomic strategies, and clearer regulations have surpassed Bitcoin’s usual four-year cycle.
According to K33 Research, it is primarily institutional investors who are fueling the current surge in BTC prices rather than retail investors.
K33 Research President Vetle Lunde emphasized this point by stating in their report: “The old four-year pattern is gone; long live the new era.” Lunde contends that this phase marks a significant shift where structural dynamics take precedence over retail speculation in influencing Bitcoin’s path.
Lunde also noted that while there are positive long-term prospects for growth, short-term indicators suggest an overheated market. This overheating is evidenced by rising open interest rates, discrepancies between futures and spot prices, and an inflated Relative Strength Index (RSI).
Nonetheless, Lunde predicts this overheated condition will likely lead to a minor correction rather than a substantial downturn for Bitcoin.
Vetle Lunde further mentioned that current trends do not support another occurrence of the traditional four-year halving pattern.
*This information should not be considered as investment advice.