Bitcoin Hasn't Broken the 4-Year Cycle Yet, Says 21Shares as BTC Dives Below $60K

Bitcoin fell below $60,000 this week, a price point that 21Shares stated has not invalidated its prediction of the cryptocurrency breaking its historical four-year cycle. The asset management firm had previously anticipated that Bitcoin would diverge from its typical halving-driven price patterns, which have historically seen significant rallies in the year following a halving event. However, the current price action suggests that the traditional cycle may still be in play, despite the recent downturn. 21Shares' analysis, published on their blog, pointed to a potential continuation of the established trend where Bitcoin experiences a substantial price increase approximately 12 to 18 months after each halving. The firm's research indicated that the market may still be reacting to the April 2024 halving event, which reduced the block reward for miners from 6.25 BTC to 3.125 BTC. This event typically leads to a decrease in the supply of new Bitcoin, which, when combined with sustained or increasing demand, has historically driven up prices. The firm's outlook suggests that investors should continue to monitor the price movements in the coming months to determine if the four-year cycle remains the dominant factor influencing Bitcoin's valuation.