Willy Woo Predicts Shift in Bitcoin Market Cycle to 6-8 Years
On-chain analyst Willy Woo has suggested that Bitcoin's traditional four-year market cycle may change in the future. The current halving-focused cycle could shift to a longer market cycle lasting 6-8 years, according to Woo.
The halving event occurs approximately every four years and reduces the block reward given to miners by half, slowing down the rate at which new Bitcoin enters circulation. However, Woo notes that the decreasing amount of new Bitcoin entering circulation relative to the total supply is reducing the impact of this mechanism on the price.
The ratio of annual new Bitcoin supply to total supply could decrease from approximately 0.8% to around 0.4% in the coming years, according to Woo. This suggests that the impact of the supply shock following the halving on the Bitcoin price may become increasingly limited compared to past periods.