- Bitcoin is created through mining, and every four years, the reward miners receive is cut in half. This event is called a halving and often affects Bitcoin’s price.
- Over the years, Bitcoin has followed a pattern of sharp price rises followed by crashes, often tied to halving events.
- Big companies and financial institutions can influence market trends by investing large amounts of money, which can affect prices and stability.
Big companies buying Bitcoin might have a big impact on the cryptocurrency price trends. For over a decade, Bitcoin has followed a simple pattern. Every four years, the Bitcoin mining rewards are cut by half in an event called “the halving”. Historically, Bitcoin has reached new all-time highs within 12–18 months after the 2012, 2016, and 2020 halving events. Now, this predictable cycle may be coming to an end, thanks to Wall Street and institutional organizations holding Bitcoins.
The numbers tell the story: corporations now own nearly one million Bitcoin. That’s a massive change from the early days when mostly individual investors bought and sold the cryptocurrency. Due to this, Bitcoin may no longer follow the crash pattern post-halving. “I think the 4-year cycle is over,” said Matthew Hougan from Bitwise Asset Management. He predicts Bitcoin could keep rising well into 2026 instead of witnessing a crash in its prices.
Martin Burgherr from Sygnum Bank agrees with other experts. He says the halving is now just “a useful reference point” rather than the main price driver. Economic conditions and institutional money flows matter more in determining the prices of Bitcoin.
Bitcoin Prices To Start Following the Traditional Finance Dynamics?
Simple maths supports this theory. With 95% of all Bitcoin already created, the halving events don’t affect supply like they used to. Pierre Rochard from The Bitcoin Bond Company explains that halvings now have minimal impact on how much Bitcoin is actually traded. Instead of mining events driving prices, Bitcoin now responds more to regular economic factors like presidential elections, Federal Reserve decisions, and new regulations. These influence the decisions of big institutions to invest billions of dollars in the crypto market.
Exchange-traded funds (ETFs) could also be a big game-changer for Bitcoin prices. These investment products let traditional investors buy Bitcoin through their regular brokerage accounts, connecting Bitcoin’s price movements to stock market patterns.
Not Everyone Agrees That Halving Is No Longer Important
Some experts think it’s too early to dismiss the importance of halving. They continue to support the idea of a four-year cycle in crypto. CRYPTO₿IRB, a well-known crypto analyst, argues that ETFs have reinforced this pattern, noting that traditional finance often follows four-year presidential cycles and that ETFs deepen the connection between crypto and traditional finance. “Not to mention 4-year halving cycles, which simply just can’t be cancelled as they’re mathematically programmed,” he added.
Seamus Rocca from Xapo Bank also has similar thoughts. He warns it’s too early to declare the cycle dead.“So many people are saying, ‘Oh, the institutions are here, and, therefore, the cyclical sort of nature of Bitcoin is dead.’ I’m not sure I agree with that,” he said.
What Is The Final Conclusion
This debate resonates the fact that Bitcoin is becoming a crucial pillar in the fininacial world. What started as a rebellious alternative to traditional money is becoming a mainstream investment that major corporations hold as treasury reserves.
If big companies treat Bitcoin like a stable asset rather than a risky bet, it could eliminate the extreme price swings that made crypto famous. The next few years will play a crucial role in deciding the fate of Bitcoin price trends. If Bitcoin stays high through 2026 without the usual post-halving crash, the four-year cycle will officially become history.
Whether Wall Street’s takeover helps or hurts Bitcoin will depend on what an investor values more: stability or the wild ride that made cryptocurrency exciting in the first place.
