Global Liquidity Trends Suggest Shift in Bitcoin’s 4-Year Cycle
The post Global Liquidity Trends Suggest Shift in Bitcoin’s 4-Year Cycle appeared on BitcoinEthereumNews.com.
The traditional Bitcoin 4-year cycle is being challenged by rising global liquidity, stablecoin expansion, and favorable policy shifts, suggesting a prolonged market growth phase that extends beyond historical halving-driven patterns and supports sustained Bitcoin appreciation. Rising stablecoin liquidity and high U.S. Treasury General Account balances indicate ongoing investor commitment, differing from past cycle drawdowns where capital typically exited. Coordinated monetary easing across major economies, including China’s injections and Japan’s stimulus, creates a supportive environment for risk assets like Bitcoin. The end of U.S. quantitative tightening and potential bank lending relief could accelerate credit growth, aligning with historical periods of strong Bitcoin performance during liquidity expansions. Discover how global liquidity trends and stablecoin growth are breaking the Bitcoin 4-year cycle, paving the way for extended market gains. Stay informed on these shifts shaping crypto’s future—explore key insights now. What Is Breaking the Traditional Bitcoin 4-Year Cycle? The Bitcoin 4-year cycle, historically tied to halving events that reduce mining rewards every four years, is showing signs of disruption due to evolving macroeconomic factors. Global liquidity expansions and stablecoin inflows are driving Bitcoin’s price dynamics more than halvings alone. This shift suggests a longer, more sustained growth trajectory rather than the sharp peaks and troughs of previous cycles. How Are Global Liquidity Trends Impacting Bitcoin’s Market Structure? Global liquidity trends are fundamentally altering the Bitcoin 4-year cycle by providing a steady flow of capital into risk assets. According to analysis from Bull Theory, stablecoin supplies have continued to rise even amid market corrections, signaling that institutional and large-scale investors are accumulating rather than retreating. This pattern contrasts with earlier cycles, where drawdowns often led to significant capital outflows; instead, current reserves position the market for broader participation. The U.S. Treasury General Account (TGA) balance, hovering around $940 billion, represents excess liquidity that typically…
