Is the 4-Year Bitcoin Cycle Dead? Liquidity Now Rules the Crypto

• The traditional BTC cycle weakens, with liquidity emerging as the dominant driver of price.
• Institutional investments and Bitcoin ETFs now lead growth, leaving behind altcoins. 
• Rising global liquidity is steering BTC’s price, surpassing the impact of the 4-year cycle.

The traditional four-year Bitcoin price cycle, which followed halving events, is losing its impact across the market. Analyst Ash Crypto highlighted that the historical Bitcoin cycle used to contain four distinct stages: a bear market, followed by accumulation, then a bull market, and finally, the euphoria phase. Recent market trends suggest that the Bitcoin price cycle is becoming less predictable, while liquidity factors are emerging as stronger determinants of its price movements.

The cryptocurrency market typically moves following the schedule of halving events, which trigger significant market transitions. The bear market transitions to an accumulation phase before the bull market emerges, followed by an extreme growth phase. The anticipated post-halving bull market has failed to materialize one year since the Bitcoin halving event occurred. Bitcoin has outpaced altcoins because investment flows from different sources.

Bitcoin price has increasingly followed investment trends from institutional stakeholders. Retail investors who previously drove the demand for altcoins now primarily focus their attention on Bitcoin, alongside growing institutional support for Bitcoin ETFs and increased involvement from institutional investors. Bitcoin demonstrates superior market performance compared to other altcoins due to a shift in market dynamics.

Liquidity Drives Bitcoin’s Price Movements

The movements in Bitcoin’s price are primarily determined by liquidity. Global liquidity has surged to unprecedented levels throughout the first quarter by adding $5.5 billion, which could reach a $12 billion increase for the entire year. Bitcoin functions as the principal asset class in which crypto market participants put their new capital inflow. The market conditions will experience substantial alterations due to this incoming liquidity flow, irrespective of traditional cycle patterns.

The M2 money supply leads Bitcoin price movements by 10–12 weeks, and Bitcoin reacts to rising global liquidity through strong upward shifts. The market data support the notion that liquidity functions as the primary market influence, rather than being driven by periodic cycles.

Related: Global Liquidity Reaches ATH as BTC Analyst Points to Potential Price Catalyst

Current market dynamics indicate a shift away from previous predictable patterns. The upcoming price behavior of Bitcoin is likely to be influenced by global liquidity patterns and institutional funding activity rather than by recurring four-year cycles. The growing liquidity will drive Bitcoin prices upward, thus proving that external factors matter more than halving cycles for market performance.