Since its inception in 2009, Bitcoin has completed multiple full market cycles. Each crypto bull market is accompanied by unique driving factors and changes in market patterns. These cyclical regularities are crucial for investors aiming to grasp the next wave of market trends. Currently, BTC is hovering around $88.67K, with room to rise toward its all-time high of $126.08K. Understanding historical patterns may help us better understand the future.
What is the essence of Bitcoin bull market cycles?
Crypto bull markets are not random; they are driven by a combination of supply constraints and market psychology. Bitcoin's "scarcity narrative" is reinforced through the halving mechanism that occurs every four years—each halving reduces the new supply of coins, often serving as a catalyst for price increases.
Historical data shows that halving events are key triggers for Bitcoin's cyclical rallies. After the 2012 halving, BTC surged by 5,200%.