Bitcoin Cycles Back to Life as Institutional Money Ignites New Rally
Bitcoin's traditional four-year cycles have been reignited, as indicated by the CryptoQuant Cycle Momentum indicator entering positive bullish territory for the first time in eight months. This signal has historically marked the end of prolonged downturns and confirmed that crypto market cycles still work like clockwork.
The current recovery is following the classic cycle-transition scenario: coins are flowing en masse from panicking retail investors to long-term holders. While retail players were realizing losses amid widespread fear, large investors were aggressively buying the bottom.
Large wallets holding at least 100 BTC added around 60,000 BTC to their holdings in August, while small investors sold a combined total of around 47,000 BTC. Large holders are so confident in an imminent rally that they have begun using it as collateral for loans to ride out the downturn.
The technical reversal is backed by a real influx of capital: Global liquidity is returning to the market with U.S. spot Bitcoin ETFs recording their strongest weekly investor inflows in the past 10 months, and more than $470 million in USDC stablecoins flowing into major exchanges.