Will Bitcoin’s Halving Cycle Change If Mainstream Players Join?

Bitcoin’s price action has been erratic so far and it’s time to consider whether traders can continue to rely on the tested, validated pattern. Like the Bitcoin halving cycle.

Source: Trade View

Bitcoin Halving Cycle

Bitcoin halving cycles are a key factor for investors to predict the long-term move of the crypto king. However, a growing number of analysts believe that the cycle is evolving or changing altogether.

Crypto Quant Big Papi Analyst feel Traders are starting to rely more on technical factors and also TRADFI agents, whales rely less on their emotions when making investment decisions.

“I think the traditional halving cycles are waning. Support for the 2021 bull run is the confidence, acceptance and growing maturity of the cycle.”

“Reduced volatility is the theme of this cycle. Bears and rallies are generally weaker.”

Presence of organizations

However, it is important to note Bitcoin’s maturity as cryptocurrency adoption increases globally and on a larger scale. At the same time, the space also welcomes more institutional actors to join. This could be a cyclical changer for Bitcoin.

Source: CryptoQuant

Another factor to keep an eye on is Bitcoin’s growing correlation with the S&P500, Nasdaq, and tech stocks. This has raised concerns that bitcoin may not be enough to diversify a portfolio or hedge against inflation once it starts moving alongside more traditional assets.

Also PlanB (father of Bitcoin’s stock-to-flow model) guess i think BTC and gold are still very far apart. An anonymous analyst looked at Bitcoin’s price drop on Feb. 24 and compared it to gold’s bullish move. He used this to hypothesize that investors might treat Bitcoin more like a tech stock than a digital product.

“Bitcoin down, gold up. It seems most investors see Bitcoin as a tech stock like Google or a meme stock, not a commodity/digital gold.”

Source: PlanB

Meanwhile, Bitcoin on-chain analyst Willy Woo has also commented on Bitcoin’s changing cycle. After the December 2021 crash, Woo to speak:

“BTC does not establish exponential racing peaks, parabolic peaks and recession peaks. We’re hitting a round top and that’s a sign that institutions are coming, short here. Some of them don’t actually hold positions, such as take profits. It’s a different game.”

However, Woo still predicts a new all-time high for Bitcoin in 2022.

Do you feel that

Sentiment data shows Bitcoin investor sentiment right now. Weighted sentiment recently dropped to -1,331 despite Bitcoin’s recent rally, showing traders are not overly confident that support will always hold.

Source: San base

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