Bitcoin’s Four-Year Market Cycle: A Persistent Phenomenon
Bitcoin‘s four-year market cycle continues to spark debate among crypto analysts and investors. Seamus Rocca, CEO of Xapo Bank, recently discussed this topic with Cointelegraph, arguing that the cycle—characterized by significant highs followed by deep corrections—remains relevant today.
Understanding Bitcoin’s Market Dynamics
Rocca noted that Bitcoin’s next downturn may stem from organic market factors rather than a single catastrophic event. Key influences include:
- A slowdown in news and developments
- Routine portfolio rebalancing by investors
Bitcoin as a Risk-On Asset
Contrary to some views, Rocca classifies Bitcoin as a risk-on asset, citing its ongoing correlation with the S&P 500 and equities. This classification reflects Bitcoin’s evolving role in global finance.
The Psychology Behind Market Cycles
Industry experts like Matthew Kratter and Aleksandar Svetski echo Rocca’s perspective. They emphasize that market cycles stem from human psychology rather than Bitcoin’s fundamental properties.
Potential Catalysts for Market Shifts
Overleveraged Bitcoin treasury companies could trigger the next bear market. However, analysts suggest the impact may be limited if these firms continue using equity rather than debt for Bitcoin acquisitions.
