Analyst Reveals Bitcoin’s Halving Cycle Signals Untapped Potential—What’s Next?

The recent price performance of Bitcoin has been sluggish, with the cryptocurrency hovering near the $97,000 mark. Despite a 3% decline over the past two weeks, Bitcoin remains in a consolidation phase following its January all-time high above $109,000.

Discussions around the ongoing halving cycle and its potential impact on future price movements have gained momentum as Bitcoin remains in this range. Analysts like Oinonen have shared insights into Bitcoin’s current standing relative to past halving cycles, pointing out that the price has only risen 63% since the most recent halving in April 2024, contrasting with the 686% surge seen in the cycle of 2020-2021.

Institutional activity, particularly from companies like Strategy (formerly MicroStrategy), continues to shape Bitcoin’s price outlook. Strategy’s ongoing acquisition strategy is seen as a key indicator of institutional demand, with continued accumulation potentially signaling a positive trajectory for Bitcoin’s spot price.

Looking ahead, Oinonen anticipates a mixed market environment, with short-term challenges potentially giving way to stronger performance in the fourth quarter. The current halving cycle appears incomplete, with the reduced issuance rate yet to be fully capitalized on, setting the stage for potential upward movements despite near-term volatility.

Overall, the presence of institutional players and the interplay between reduced supply and continued demand suggest that Bitcoin’s bull run may still have legs, supported by historical trends and market dynamics.