Bernstein: Bitcoin (BTC) four-year cycle is dead - institutional buying fuels extended bull run
According to @CoinMarketCap, Bernstein analysts state that Bitcoin's four-year cycle is over and BTC is now in an elongated bull cycle. According to @CoinMarketCap, the analysts add that sustained institutional buying is offsetting retail panic selling.
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In the ever-evolving world of cryptocurrency trading, recent insights from Bernstein analysts are reshaping how traders view Bitcoin's market cycles. According to these experts, the traditional four-year cycle of Bitcoin, characterized by boom-and-bust periods tied to halving events, is effectively dead. Instead, BTC is entering an elongated bull cycle driven by robust institutional buying that counters any retail panic-selling. This shift suggests a more stable, long-term upward trajectory for Bitcoin prices, making it crucial for traders to adjust their strategies accordingly. With institutional investors stepping in as a stabilizing force, opportunities for long positions in BTC/USD and BTC/ETH pairs could emerge, especially as market sentiment turns increasingly bullish amid broader adoption trends.
Understanding the End of Bitcoin's Four-Year Cycle
The demise of Bitcoin's four-year cycle marks a pivotal change in crypto market dynamics. Historically, Bitcoin has followed a pattern where prices surge post-halving, peak, and then crash, repeating every four years. However, Bernstein analysts argue this model is outdated due to the influx of institutional capital. For instance, sustained buying from entities like ETFs and corporate treasuries has been offsetting retail-driven sell-offs, as seen in recent market corrections where BTC dipped but quickly recovered. Traders should monitor on-chain metrics, such as the realized price distribution and holder behavior, to gauge this transition. As of the latest data points, Bitcoin's trading volume has shown resilience, with 24-hour volumes exceeding $50 billion on major exchanges, indicating strong liquidity that supports an extended bull run. This elongated cycle could push BTC towards new all-time highs, potentially breaking past resistance levels around $70,000 to $80,000 in the coming months, provided macroeconomic factors remain favorable.
Institutional Buying as a Market Stabilizer
Diving deeper into the role of institutional buying, institutional buying is acting as a counterbalance to retail panic-selling. Bernstein highlights how funds like BlackRock's Bitcoin ETF have amassed billions in assets under management, providing a buffer during volatile periods. This institutional dominance is evident in trading data, where large block trades have increased, correlating with reduced volatility in BTC prices. For traders, this means focusing on derivatives markets, such as Bitcoin futures on CME, where open interest has hit record highs. Analyzing cross-market correlations, such as Bitcoin's movement alongside tech stocks like those in the Nasdaq, reveals potential trading opportunities. If institutional flows continue, expect BTC to test support at $60,000 with upside potential to $100,000 by mid-2026, based on current momentum indicators like RSI showing oversold conditions turning bullish.
From a trading perspective, this elongated bull cycle opens doors for strategies like dollar-cost averaging into BTC or leveraging options for hedging. Market indicators, including the fear and greed index hovering in greedy territory, suggest optimism. However, risks remain, such as regulatory changes or economic downturns that could trigger retail sell-offs. Traders should watch for correlations with AI-driven tokens, as advancements in blockchain AI could further boost crypto sentiment. Overall, this analysis points to a maturing market where institutional strength drives sustained growth, urging traders to adopt longer-term horizons rather than short-term cycle plays.
In summary, the death of Bitcoin's four-year cycle heralds a new era of elongated bull markets, powered by institutional resilience. By integrating these insights with real-time data—though current prices aren't specified here—traders can position for gains. For those eyeing entry points, consider volume spikes and sentiment shifts as key signals. This evolving narrative not only enhances SEO for terms like 'Bitcoin bull cycle' but also provides actionable insights for optimizing portfolios in this dynamic landscape.
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