Why bitcoin will break out of its 4 year cycle

Why bitcoin will break out of its 4 year cycle

By Hotline | Making crypto work | 7 Mar 2021


In the price charts of bitcoin a somewhat clear four year cycle can be identified - which can be linked to the halvenings of bitcoin. Halvenings are basically when the reward for mining a block is cut in half. This is done to reduce inflation. 

 

Historically after the halvenings the price goes up quite a bit during a big bull run, and later corrects itself. The correction was always quite heavy, and as many of you might know, when bitcoin moves, so do all the alt coins. This is one of the reasons why many old dogs are being very cautious with crypto in general right now.

 

In my opinion we are now at a turning point in history, where we will break free from the 4 year cycle - and here is why: We recently have seen a huge spike of interest in crypto from big money. It has been leaked that the way Tesla bought their 1.5B usd worth of bitcoin in lots of very small sums. Only buying a larger portion when the price dropped significantly. Nobody knew of this, as there was no one big transaction happening. And once they got their whole bag invested they released the news, causing the price to go up even higher! 

Now my theory is that every single big firm which invests is currently doing exactly this. Hoarding up bitcoin in secret, in many very small sums. This already keeps the price more stable. But here comes the banger - once it does drop due to outside factors, they can contact the media and make a statement of how they bought 1.5B usd worth of bitcoin and pump the price back up.

Keep in mind that they do not have to sell, as these are huge companies. They are already gaining a lot by just holding btc and having their company worth increase.

 

 

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Hotline
Hotline

I enjoy playing video games, cooking, watching movies and follow all kinds of sports. Currently studying media and communication, and self teaching Python.


Making crypto work
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