The comparison of Bitcoin charts for the periods 2020–2021 and 2024–2025 may be related to certain cycles in the cryptocurrency market. Bitcoin demonstrates recurring patterns associated with halving events (the reward for mining is cut in half), which occur approximately every four years. Here are the key points explaining the similarity of the charts:
1. Halving and its impact
• 2020: The halving occurred in May, reducing the supply of new coins, which triggered an increase in demand and a strong price impulse in 2020–2021.
• 2024: The next halving is expected in April 2024. This may again limit supply, creating a similar price growth dynamic in 2024–2025.
2. Market cycles (Bull and Bear)
• Bitcoin follows four-year cycles:
• Bull Market (growth): Occurs after halving due to reduced supply and increased interest from investors.
• Bear Market (decline): Typically follows a peak when the market overheats.
• In 2020–2021, there was a strong bull market that ended with a correction in 2022. A similar dynamic may repeat in 2024–2025.
3. Macroeconomic factors:
• 2020–2021: Low interest rates and high liquidity due to central bank stimulus measures (in response to the COVID-19 pandemic) supported the growth of cryptocurrencies.
• 2024–2025: If the macroeconomic situation is favorable (e.g., interest rate cuts or easing inflation), this could support new growth.
4. Technical and psychological aspects
• Charts often reflect not only fundamental factors but also investor behavior, who react to familiar patterns (FOMO, fear, greed).
• Similar trends may be driven by market participants' expectations based on previous cycles.
What this could lead to:
• Price increase: If the pattern repeats, Bitcoin could reach new highs in 2024–2025.
• Influx of investors: A bull market attracts new participants and institutional investors.
• Correction after peak: After a strong rise, a period of price decline usually follows, which may begin in 2025–2026.
However, it is worth remembering that past performance does not guarantee future results, and the cryptocurrency market remains highly volatile and dependent on many factors.#BTC
