Bitcoin declines 5% from its all-time high—cycle top?

With the Fed's aggressive rate reduction announcement, bitcoin investors panicked and sold heavily.

The latest downturn may be brief due to Bitcoin's four-year market cycle.

Crypto market cycles may have changed because to Bitcoin ETFs.
After cryptocurrencies lost almost 5% of their market value, Bitcoin (BTC) traded around $97,000 on Friday. Despite pessimistic market sentiment, multiple variables imply BTC may not have crested in the current cycle.

After the FOMC's aggressive 2025 rate drop prediction, Bitcoin fell from $108,300 on Wednesday. The crypto market sold down when the Fed announced just two rate cuts next year, against market forecasts of four.

Bitcoin Coinbase premium fell, indicating that US investors were major sellers. Difference between Coinbase and Binance's BTC/USD pair. A drop indicates stronger US selling than elsewhere.

With Bitcoin's recent drop from its all-time high, most investors wonder whether its bull run is over. Following factors show mixed signals:

Bitcoin Market Cycle.

Bitcoin's four-year market cycle includes accumulation, bull market, distribution, and bear market. If this market cycle continues, Bitcoin might climb beyond 2025 before hitting a price limit. Additionally, market participants' anticipation of the cycle repeating this pattern may self-fulfill.

Historic Cycle Dynamics Change
Bitcoin has synergy with prior cycles, however the present cycle has shifting characteristics. Bitcoin typically peaks one year after halving.

After halving in 2016, Bitcoin's price peaked in August 2017 in the 2015-2018 cycle.

In November 2021, one year after its 2020 halving, its price reached new highs in the 2019-2022 cycle. BTC reached a new ATH in March before halving in April, changing this pattern.

Investors have two options: Either Bitcoin's price trend has changed after the halving event, or BTC has yet to rise post-halving.

#BTCNextMove #MarketPullback #MarketCorrectionBuyOrHODL? $BTC $ETH $XRP