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Bitcoin recently hit a new highest of $ 112,000 on May 22.
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Based on historical evidence, Bitcoin tends to follow four -year cycles, redirected from periods of boom and bust.
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The performance of Bitcoin in 2025 is not similar to its presentation during a rally at Bull Market 2021.
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On May 22, Bitcoin (Crypto: BTC) Hit a new highest maximum of nearly $ 112,000. With the total market cap of $ 2.2 trillion, it is now ranked as one of the five most valuable assets in the world, lagging only behind Apple (Nasdaq: AAPL)., Nvidia (Nasdaq: NVDA)., Microsoft (Nasdaq: msft)And gold.
Based on the above, it may seem that Bitcoin is a non-brain investment right now. But right? Let’s take a closer look at the historical evidence of Bitcoin.
Given that Bitcoin started trading in January 2009, we now have a 16 -year history to look at. And the prevailing proof is that Bitcoin tends to trade with a fairly well -defined four -year cycles. The cycle begins with a constant phase of accumulation that leads to a growth phase that leads to a phase of bubbles, which ultimately ends in a steep decrease or even collapse. At this point, the whole cycle begins again.
The determining moment of each four-year cycle is half Bitcoin, which is being held-you know every four years. Knowing when the latest reduction event took place, it is relatively easy to understand where Bitcoin is in every four-year cycle. This is because half is usually the Bitcoin signal to move from the growth phase to the bubble phase.
And that has been concerned with me right now. Based on historical evidence, the bubble phase lasts from 12 to 18 months. So, let’s make mathematics. The most recent Bitcoin halfway took place in April 2024, which means that we are more than 12 months in the bubble phase of the cycle.
Thus, although at the moment all lights are blinking green for Bitcoin, there are yet to be problems. The time to be most concerned about Bitcoin is when everyone is convinced that Bitcoin is an investment in a helmet. And this is happening now: retail investors buy every bit of bitcoin, corporations add Bitcoin to their balance sheets, and even the US government is trying to think of a way to buy bitcoin.
Not yet convinced? Then take a closer look at the Bitcoin diagram from the previous four-year cycle, which included a declining event on May 11, 2020. At the date of half, Bitcoin was traded at about $ 10,000. Over the next 12 months, it eventually reached a price of $ 60,000 in April 2021.
Bitcoin / US Dollars Diagram from TradingView