Bitcoin Cycle Compresses as Price Hits New Highs Before Halving

Bitcoin's four-year cycle may be compressing rather than breaking apart, according to some analysts. This cycle typically sees price bottoms occur between 770-900 days after halvings. However, with Bitcoin reaching new all-time highs before the upcoming halving event, this pattern is showing signs of change.

The shift in Bitcoin's price dynamics can be attributed to institutional inflows via spot ETFs and a larger market capitalization, making it more tied to macroeconomic liquidity than halving supply shocks. This has led some analysts to suggest that the cycle is compressing, with bottoms and tops occurring closer together.

Investors are now watching macro indicators and upcoming months to see if this new pattern holds. A key figure to watch will be the S&P 500 index, as a 20% drop could potentially send Bitcoin's price down to $10,000.