bitcoinHalving plays an important role at the start of bear and bull markets in . For this reason, investors can take positions according to 4-year cycles.
4-year cycles is a long process that covers the pre- and post-halving periods in Bitcoin. The previous halving took place in May 2020 and there was a big bull market in late 2020 and 2021.
There are 724 days until the next halving. This suppresses the expectations that there will be a real bull, although there will be intermediate increases until 2024.
“The 4-Year Cycle Phase Is Over”
Analyst Willy Woo bitcoinHe made a post by expressing that he thinks that 4-year cycles will no longer be experienced in .
Referring to his post in October 2021, the analyst stated that the 4-year cycle thesis has come to an end, and that after the bottom in 2019, there were 3 bull and one bear markets.
He stated that Bitcoin, which had a predictable rise with 4-year cycles in the past, now enters an unpredictable bullish phase until it reaches saturation in a complex ecosystem.
We’re likely seeing the first signs of “The Last Cycle” thesis playing out. 3 relatively short bull and bear markets have transpired since the 2019 bottom already.
ie No more 4 year cycles. https://t.co/N3VzlKx2IA
— Willy Woo (@woonomic) March 20, 2022
Looking at the chart, the analyst thinks that with shorter-term bear and bull markets, Bitcoin will continue its uptrend.
What is halving?
In simple terms, Bitcoin miners earn a certain amount of Bitcoin as a reward for every 1 block (approximately 1 in 10 minutes) transaction. This earned Bitcoin becomes the first ever produced Bitcoins and is given to the miners as a reward. Thus, miners both perform transactions (transfers and verifications) on the network and generate new Bitcoins.
The decrease in the rate of this Bitcoin produced by half, that is, the halving of the reward given to the miners, is called halving..
Currently, 6.25 Bitcoins are mined every 10 minutes. After 4 years, the number of Bitcoins mined will decrease to 3,125.
*Not Investment Advice.