Experts believe that for Bitcoin to hit the $50,000 level is evidence that it has waded off its four-year cycle trend. There has been a progressive change in its four-year market cycle for some other major players in the industry. This change implies that the timing may no longer be a deciding factor for the cyclical conditions, particularly now that the BTC is closing on the midpoint. Before we continue, we must understand the term ‘halving.’ When they say that the bitcoin price is halving, it happens when the bitcoin price issued to each newly mined block is decreased by half.
The upcoming halving of bitcoin price is expected to happen earlier or later than May 5, 2024, and it is expected to reduce the block rewards to about 3.125 BTC. Doing this will settle any doubts, proving the possibility that the conventional market structure has been broken. And with just a few days to go into the “huge break,” the price of bitcoins fell by 3.31% in the past 24 hours (as at the time of this writing). It is also expected to fall further by the week, leaving it at $43,528 (as of the time of writing).
A Brief Run Down on Bitcoin Price
Before, the bitcoin price has recorded four halving at the moment. These so-called halving have witnessed similar three known major events in four years. Expert analysis believes that there is always a bull market after every halving. As in, bitcoin price will begin to climax within the network, “an all-time high.” The last time bitcoin observed such a pattern was May 2020, and the halving continued till November 2021, when it hit an all-time high.
But mind you, after this event comes a prolonged bear market, which often comes after the mid-halving. Today, the market is gearing up for another four-year cycle as the bitcoin network approaches a mid-halving, but there has not been an impending bear market insight. Through some recent observations, Bitcoin experts said that the bitcoin price movement this time was predictable; there may not be a need for a four-year cycle anymore. Also, note that there has been
brief fluctuations in market growth, which was experienced since 2019 without much tremendous impact, as not too many traders know about it.
This event, which is believed to have started playing out, increased at a much higher rate than in mid-2018, halving 2018. In this next event, experts believe a lot of demand and supply will dominate a sudden bull run. In this case, a high network activity encourages higher demand.
But other people have a different opinion about this proposed four-year cycle. But the leftists have a whole new different analogy; there has been a break, although the 4-year cycle has been broken. And on March 20, there was another wide speculation that there is one more cycle to go before the bitcoin price finally moves into a whole new growth phase.
How Investors are Expected to React to the Fall of Each Bitcoin Price
Bitcoin prices fall below $40,000, breaking below the long-held position. This $40,000 benchmark has reached the make-or-break level for BTC; this position and the circumstances of this decline determine how bullish or bearish it becomes shorter.
An average investor should pay more attention to global events, such as the surging inflation rate, graphical crisis, and Federal Reserve policies introducing higher interest rates. A few hours later, the Federal Reserve announced its plans to reduce the balance sheet by $95 billion every month to control the rising inflation in U.S. inflation.
Each investor is expected to study inflation reports; they can decide the next major price move. But the last report shows that consumer’s prices increased by 8.5% throughout March last year. And it has also been named the quickest inflation since 1981. The same factors that brought about these movements are still driving more volatility in the stock market and the cryptocurrency industry.
It has been said that the cryptocurrency market has been tracking the stock market in recent times. This is combined with the major adoption and declining prices experienced at the beginning of the year. Finally, these changes are linked to the current developments in the eastern part of Europe. Not just Bitcoin, Ethereum had once followed the same pattern.