Bitcoin (BTC), Extreme Fear 'Shock'... Bearish Phase Repeats vs 4-Year Cycle Ends

▲ Bitcoin (BTC)

As Bitcoin (Bitcoin, BTC) falls into 'extreme fear,' the 4-year cycle theory once again takes center stage in the market. The argument that a bearish phase is repeating like the World Cup and the counter-argument that the era of the 4-year cycle has ended clashed head-on.

According to Yahoo Finance, a financial news outlet, on July 8 (local time), cryptocurrency analyst Benjamin Cowen argued that Bitcoin and the World Cup are similar. Cowen said, "Both have a 4-year cycle." The Crypto Fear & Greed Index fell to 19, entering the 'extreme fear' zone.

Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, pointed out that investors "need some harsh words." Balchunas stated, "We need to move away from reliance on narratives and intermediaries and return to basics." He then evaluated Bitcoin as "an asset that can resist censorship."

Investor Lyn Alden also said, "Nothing is coming to save Bitcoin," and "Bitcoin must survive on its own value." Cowen and Balchunas viewed the recent Bitcoin weakness as a phase in the market cycle rather than a sign of a broken long-term thesis.

On the other hand, Michael Saylor of MicroStrategy (Strategy, MSTR) argued that "the 4-year cycle is no longer the dominant model." His judgment is that as Bitcoin has become deeply connected to institutions and global capital markets, it has become difficult to explain it solely through individual investor-centric cycles.

Saylor predicted that capital inflows would dictate Bitcoin's long-term trend over the next decade. He presented Bitcoin spot ETFs, corporate treasury assets, national reserve assets, bank credit, derivatives, insurance, collateral, structured credit, and global savings funds as key variables. Saylor said, "We don't simply need more buyers; we need more balance sheets."

[Article Key Summary]

-Benjamin Cowen argued that both Bitcoin and the World Cup have a 4-year cycle.

-The Crypto Fear & Greed Index fell to 19, and market sentiment entered the 'extreme fear' zone.

-Michael Saylor predicted that the 4-year cycle is no longer the dominant model and that capital inflows will dictate the long-term trend.

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