
Understanding the Crypto Market’s 4-Year Cycle: Where We Are Now and What to Expect in 2025
Feb 28
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The cryptocurrency market operates in well-documented 4-year cycles, largely influenced by Bitcoin’s halving events. These cycles have historically followed a pattern of expansion, peak, correction, and accumulation before the next bull run begins. As we enter 2025, understanding where we stand in this cycle and how to strategically navigate it can be the key to maximising returns.
The Crypto Market’s 4-Year Cycle Explained
Bitcoin’s halving occurs approximately every four years, reducing the mining reward by 50%. This event historically acts as a catalyst for a new bull market, as the reduced supply often leads to increased demand and higher prices. Looking at past cycles:
2012 Halving → 2013 Bull Market
2016 Halving → 2017 Bull Market
2020 Halving → 2021 Bull Market
2024 Halving → 2025?
Where Are We Now?
As of 2025, we are in the post-bear market accumulation phase, with Bitcoin and other major cryptos steadily recovering from the lows of 2022-2023. The Bitcoin halving in April 2024 has ignited the current major bull run, with 2025 likely being the year of peak euphoria in the market.
Historically, the year following a halving has always seen exponential price increases, driven by increased demand and FOMO (fear of missing out). This aligns with the current macroeconomic landscape where institutional adoption of crypto is accelerating, and regulatory clarity is improving.
Why 2025 Could Be a Massive Year
Based on historical data, 2025 is projected to be the peak of the current cycle. Several factors contribute to this:
Bitcoin Supply Shock: As mining rewards get cut in half, the available new supply decreases, leading to scarcity-driven price appreciation.
Institutional Involvement: More institutional investors are entering the market, leading to increased liquidity and stability.
Mainstream Adoption: More businesses and countries are recognizing Bitcoin as a store of value, further driving demand.
How to Time This Bull Market
Understanding market cycles allows investors to optimize their strategies. Here’s how you can position yourself:
Accumulate Now: Historically, accumulation before the halving has proven to be one of the best times to enter the market.
Ride the Bull Market: As the market gains momentum in 2024-2025, strategic profit-taking at key resistance levels can help maximize gains.
Exit Before the Top: Based on historical cycles, market tops usually occur about a year after the halving. Monitoring on-chain metrics and sentiment indicators can provide insights into when euphoria is at its peak.
Prepare for the Next Cycle: After the peak in 2025, the market will likely enter another bear phase, bottoming out around 2026-2027. This will be the next prime opportunity to accumulate for the 2028 bull run.
Looking Ahead: The 2028 Bull Market
If the cycle continues as it has historically, 2028 will mark another explosive growth phase following the 2028 halving. Investors who strategically accumulate during the upcoming bear market and hold through the next cycle will be well-positioned to benefit once again.
Final Thoughts
Timing the crypto market isn’t about predicting exact tops and bottoms but understanding historical cycles and positioning accordingly. As we move into 2025, the opportunity to capitalize on the next bull market is now. By planning ahead and using previous cycles as a guide, investors can maximize gains in 2025 and prepare for the next cycle leading into 2028.
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