Big Change Signal in Bitcoin: Famous Analyst Willy Woo Shares New Scenario, Pointing to 6-8 Years!
As Bitcoin retreated to the $77,000 level after its recent surge, on-chain analyst Willy Woo suggested that Bitcoin’s traditional four-year market cycle could change in the future.
At this point, Woo, who discussed Bitcoin’s traditional four-year market cycle, stated that this model may change in the coming period.
Woo stated that Bitcoin could shift away from its halving-focused four-year price cycle to a longer market cycle lasting 6 to 8 years.
The Impact of Halvings on Bitcoin Price is Weakening!
Willy Woo noted that Bitcoin’s market cycles to date have been significantly shaped by the halving event, which occurs approximately every four years.
However, this situation may be changing. At this point, Woo noted that the decreasing amount of new Bitcoin entering circulation relative to the total supply reduces the impact of this halving mechanism on the price.
Bitcoin halvings reduce the block reward given to miners by half approximately every four years, slowing down the rate at which new supply enters the market.
At this point, Woo notes that the ratio of annual new Bitcoin supply to total supply could decrease from the current level of approximately 0.8% to around 0.4% in the coming years.
According to Woo, this suggests that the impact of the supply shock following the halving on the Bitcoin price may become increasingly limited compared to past periods.
Macroeconomics May Take Center Stage Instead of Halving in the Bitcoin Cycle!
Woo suggested that with the weakening supply effect stemming from the halving, macroeconomic conditions and global liquidity dynamics could become more decisive in Bitcoin’s price cycles.
At this point, according to the analyst, Bitcoin’s future market cycles may show more parallels with the 6-8 year short-term debt cycles seen in traditional financial markets than with the four-year halving calendar.
Woo’s 6-8 year cycle prediction and such a shift could be interpreted as meaning that Bitcoin’s bull and bear markets may not be shaped around halving dates in the future. However, this assessment does not mean that Bitcoin’s classic four-year cycle has ended.
Woo’s main point is that as the impact of halving-related supply shocks diminishes, the Bitcoin price may become more sensitive to macroeconomic factors.
In this context, it is considered that liquidity conditions, interest rates, credit conditions, and borrowing cycles may play a more significant role in Bitcoin’s future market movements.
*This is not investment advice.
