Analysts generally state that the classic 4-year halving cycle for Bitcoin is over and that it is now driven by institutional support.
At this point, analysis company K33 Research stated that the 4-year halving cycle in Bitcoin has ended and the structural bull market will continue.
According to The Block, analysts at K33 Research said Bitcoin's traditional four-year halving cycle has been overridden by factors such as institutional adoption, shifts in macroeconomic policy, and increased regulatory clarity.
K33 Research said that the current BTC rally is driven by institutional investor interest rather than retail investor frenzy.
On this point, K33 Research President Vetle Lunde stated in the report, “The four-year cycle is dead, long live the king.” Lunde argued that this cycle is indeed different, and that Bitcoin has entered a fundamentally new regime where structural forces, not retail frenzy, determine its trajectory.
Vetle Lunde said that despite long-term bullish expectations, the market appears overheated in the short term. The overheating is indicated by a significant increase in open interest, a discrepancy between futures and spot prices, and an overbought Relative Strength Index (RSI).
However, Lunde said that this overheating situation in Bitcoin will likely result in a short-term correction rather than a major downward reversal.
Vetle Lunde added that current indicators do not indicate a repeat of the four-year halving cycle.
*This is not investment advice.