Bitcoin enthusiasts are commemorating the one-year anniversary since the 2024 Bitcoin halving by lauding BTC’s fortitude amidst a worldwide trade dispute while also indicating a hastened market cycle due to an increasing presence of institutional players.
The 2024 Bitcoin halving cut block rewards from 6.25 Bitcoin (BTC) to 3.125 BTC, effectively halving the emergence of new BTC.
In light of growing anxieties regarding a global trade conflict and intensifying tariff disputes between the United States and China, BTC has surged over 33% since April 2024, according to data from Cointelegraph Markets Pro indicates.
“Although Bitcoin is demonstrating resilience, I believe that the combination of previous experiences, economic uncertainty, and this selling pressure is keeping investors cautious, awaiting a stronger signal before making a move,” stated Enmanuel Cardozo, a market analyst at the asset tokenization platform Brickken.
Cardozo further noted that institutional investments from companies like Strategy and Tether could hasten Bitcoin’s conventional four-year halving cycle. He remarked:
“With the halving in May 2024, this places the bottom around Q3 of this year and a peak around mid-2026. However, I believe we may observe shifts occurring slightly earlier as the market is now more developed with greater liquidity.”
Nonetheless, Bitcoin’s pathway is still linked to broader monetary policies, the analyst emphasized. He suggested that a rate cut by the US Federal Reserve in May or June might “infuse more capital into the system and drive Bitcoin upwards more rapidly.”
The halving is an inherent characteristic of the Bitcoin network that ensures Bitcoin’s scarcity, regarded as one of the defining monetary traits of BTC.
Related: Crypto and stocks enter ‘new phase of trade war’ amid rising US-China tensions
ETFs and institutions drive swifter cycles
The institutional adoption along with Bitcoin exchange-traded funds (ETFs) may be playing a role in shortening the market cycle, as per Vugar Usi Zade, chief operating officer at the Bitget exchange.
Ongoing institutional purchases, including from Bitcoin ETFs, combined with Bitcoin’s increasing scarcity, could facilitate Bitcoin’s ascent to new peaks, he informed Cointelegraph.
“Due to the heightened scarcity triggered by the halving, Bitcoin is likely to revisit its all-time high if it surpasses the $90,000 threshold in the upcoming weeks,” Usi Zade stated. “While the halving provides a solid foundation for growth fueled by demand and scarcity, the timing of price impact can differ over time.”
He observed that Bitcoin’s expansion remains closely linked to conventional financial markets and investor sentiment.
Related: Bitcoin’s speculative interests wane as investors seek security
Bitcoin attained a new all-time high exceeding $109,000 on January 20, 273 days post the 2024 Bitcoin halving, indicating an expedited market cycle.
By contrast, it took Bitcoin 546 days to achieve an all-time high after the 2021 halving, and 518 days post the 2017 halving, based on information shared by renowned crypto trader Jelle in an April 8 X post.
