Saylor "Bitcoin (BTC) 4-year cycle law broken"...What's the next destination?

▲ Bitcoin (BTC)

A diagnosis has emerged that the 4-year cycle that has dominated the Bitcoin (BTC) market has ended. The analysis suggests that the market has entered a new phase where large-scale institutional funds, rather than halvings and individual investor demand, determine market trends.

According to the cryptocurrency media outlet U.Today on July 5 (local time), Michael Saylor, chairman of Strategy, stated that Bitcoin's 4-year cycle is no longer the dominant model for the market. Saylor analyzed that Bitcoin is moving towards becoming a global 'digital capital'. He explained that the market's direction is also being swayed by the influx of large institutional funds.

Saylor diagnosed that the decrease in coin issuance by miners has lost its past importance. Bitcoin spot ETFs, stock market derivatives, and corporate finances of listed companies have emerged as new sources of demand. Sovereign wealth funds, national reserve assets, and interbank credit/collateral products were also identified as major channels for fund inflow.

Saylor said, "The next phase of Bitcoin adoption is not simply an increase in buyers, but more balance sheets participating." He judged that market liquidity has already become too large to maintain the past individual investor-centric cycle.

He also predicted that Bitcoin's underlying layer will focus on stability. Saylor expects the protocol to become more conservative over the next 10 years and serve as a platform for large-scale final settlements. He explained that due to strict participant consensus, code changes will become rare, and technologies like the Lightning Network and sidechains will move to the periphery of the system.

Saylor stated that a digital credit industry connected to the traditional economy is forming around Bitcoin. At the same time, he identified the emergence of 'paper Bitcoin', where more debt claims are created than actual coins, as a key risk for the next 10 years. He emphasized the importance of custodian transparency and proof of reserves for investor safety.

[Key Summary of the Article]

-Saylor stated that the Bitcoin 4-year cycle, based on halvings and individual investor demand, no longer dominates the market.

-Large capital flows, such as Bitcoin spot ETFs, corporate finances, and sovereign wealth funds, have been identified as new market drivers.

-Saylor warned of 'paper Bitcoin,' where debt claims exceeding actual coins are created, as a key risk for the next 10 years.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*