The debate between the monetary policy view and the cyclical view continues to shape Bitcoin’s market trajectory:
Monetary Policy View: Proponents of this view argue that $BTC ’s value is increasingly influenced by global central banks' monetary policies. As inflation remains a concern and interest rates fluctuate,
Bitcoin is often seen as a hedge against fiat devaluation, similar to gold. When central banks, such as the Federal Reserve, tighten or loosen monetary policies, it impacts liquidity in the financial system, thereby influencing Bitcoin prices. Bitcoin’s performance in response to macroeconomic factors like rate hikes or quantitative easing has become more pronounced.
Cyclical View: On the other hand, the cyclical view sees Bitcoin as part of a natural market cycle that alternates between bull and bear phases, largely driven by #Bitcoin 's halvings and market sentiment.
These cycles are marked by periods of accumulation, rallies, and corrections, driven by supply and demand dynamics. #Bitcoin tends to experience a bullish rally post- post-halving, followed by extended bear markets or corrections before resetting for another #bullish cycle.
