The 4-year cycle in cryptocurrency refers to a pattern observed in Bitcoin’s market where significant events called “halvings” occur approximately every four years. During a halving, the reward given to Bitcoin miners for verifying transactions on the blockchain is cut in half. This reduction in supply typically leads to an increase in the asset’s scarcity and, consequently, its value.
Each halving event triggers a bull market, where the price of Bitcoin tends to rise significantly. Historically, these bull markets have peaked around a year after the halving, followed by a bear market that can last for another year or more. This cycle of boom and bust has repeated itself multiple times in Bitcoin’s history.
Investors and traders often anticipate these halving events and adjust their strategies accordingly. The 4-year cycle is closely watched by the cryptocurrency community as it provides valuable insights into the potential price movements of Bitcoin in the future.
