Bitcoin's Price Cycle Shifts as It Becomes Store of Value Amid Macro Influences

Bitcoin's traditional four-year price cycle may be reaching its end as the asset shifts towards becoming a store of value. Historically, Bitcoin's price fluctuations have been tied to mining reward halvings. However, analysts at K33 Research note that this impact is diminishing due to increased institutional access and sovereign interest. This shift in behavior could be attributed to wider adoption and recognition by financial institutions.

In recent times, Bitcoin has shown resilience in the face of inflationary pressures and global trade tensions. Its price rose 6.6% for the week after cooler US inflation data was released. Additionally, US spot Bitcoin ETFs have seen ten consecutive days of inflows led by BlackRock's IBIT fund.

Despite this positive trend, traders remain divided on whether Bitcoin can reach $150,000 by Q3. Some are skeptical due to seasonal slowdowns and market fatigue, while others point to ETF demand, limited supply, and potential Fed rate cuts as bullish factors.