How to Play This Bitcoin Boom Cycle

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Key Takeaway:

  • While most other investors ran away from Bitcoin and cryptos in late 2022, we ran toward them. We told our subscribers that the bottom was in and that it was time to get aggressive. Since then, Bitcoin has risen 280%, Ethereum has popped 180%, and Solana has soared more than 1,200%.
  • Since 2011, Bitcoin has followed a nearly identical pattern every four years. It starts to boom about 12 months before a halving event and keeps booming for roughly 12 months after. Then, Bitcoin tops out and crashes about 80% over the course of the next two years. It bottoms about 12 months before the next halving event, then enters another “boom” cycle.
  • The Fourth Bitcoin Halving isn’t expected until April. Boom cycles typically last at least 12 months after these halving events. So, that means this Fourth Crypto Boom Cycle likely has more than 13 months of runway ahead.
Bitcoin - How to Play This Bitcoin Boom Cycle

Source: Co-Pilot

Editor’s Note: This article was previously published as “How to Strike It. Rich During This Bitcoin Boom Cycle” earlier this year. It has been updated with the most up-to-date information.

In December 2022, I made a bold prediction: Cryptocurrencies will soar, and Bitcoin will rise by more than 100% in 2023.

At that time, the claim appeared bold to the most dedicated cryptocurrency enthusiasts and seemed outright foolish to nearly everyone else.

Bitcoin (BTC-USD) was trading under $17,000. It had crashed 75% over the previous two years. And the industry’s biggest persona – Sam Bankman-Fried of FTX – had just been arrested for fraud. 

It looked like the book was closing on cryptos for good. 

We did not see things that way. 

While most other investors ran away from Bitcoin and cryptos in late 2022, we ran toward them. We told our subscribers that the bottom was in and that it was time to get aggressive. 

Since then, Bitcoin has risen 280%, Ethereum (ETH-USD) has popped 180%, and Solana (SOL-USD) has soared more than 1,200%. 

Our call proved to be quite prescient – and profitable. 

So, how’d we do it? 

By understanding crypto cycles.

Understanding Crypto Market Cycles

Crypto markets oscillate between major booms and busts in conjunction with halving events.

Every four years, Bitcoin experiences a halving event, during which the amount of Bitcoin mined per transaction is reduced by half. Consequently, Bitcoin’s supply production decreases by 50%. This mechanism is crucial because Bitcoin operates on the principle of having a limited supply.

As such, it could be expected that Bitcoin enters boom cycles as these halving events approach. Similarly, it could be expected that Bitcoin enters bust cycles when these events are distant.

What is surprising, however, is the extent to which Bitcoin adheres to these halving-driven cycles.

Since 2011, Bitcoin has exhibited a nearly identical pattern every four years.

The cycle typically begins with a boom approximately 12 months before a halving event and continues for about 12 months afterward. Then, Bitcoin reaches a peak and plummets roughly 80% over the next two years. It hits a low around 12 months before the subsequent halving event, then starts another boom cycle.

This pattern has repeated not once, not twice, not three times, but four times.

We are currently in the fourth crypto boom cycle.

This crypto cycle analysis is what allowed us to call the bottom back in late 2022, when everyone else was afraid of touching Bitcoin. 

It’s also why we’re still pounding the table on cryptos right now.

The Fourth Crypto Boom Cycle

This boom cycle, which we are calling the Fourth Crypto Boom Cycle, is far from over.

The Fourth Bitcoin Halving is not expected until April. Boom cycles typically last at least 12 months after these halving events. That means the Fourth Crypto Boom Cycle likely has more than 13 months of runway ahead.

And those 13 months could prove to be the most lucrative of this boom cycle.

That is just how these cycles operate.

Bitcoin increases significantly in the first half of the boom, during the 12 months before the halving. However, Bitcoin truly soars during the boom’s second half, in the 12 months that follow.

Consider the following:

  • During the First Boom Cycle, Bitcoin rallied 500% in the first half, then soared more than 9,000% in the second half of the cycle.
  • In the Second Boom Cycle, Bitcoin initially rallied about 100%, then soared nearly 3,000% in the cycle’s second half.
  • And during the Third Boom Cycle, Bitcoin increased 35% at first, then soared almost 500% in the second half of the cycle.

The returns in a crypto boom cycle’s second half tend to be an order of magnitude larger than the returns in the first half.

The Final Word

Bitcoin is up around 100% so far in the first half of the Fourth Crypto Boom Cycle. And history suggests it could rise 1,000%-plus over the next 12 months. 

So, no, it is not too late to buy cryptos. 

You didn’t miss the boat. The train hasn’t left the station. 

There’s still time to potentially strike it rich in this crypto boom cycle.

That’s why we just issued new Buy Alerts on several cryptos that we feel are prepared to soar in the Fourth Crypto Boom Cycle’s second half. 

Don’t miss out on potentially lucrative opportunities — Find out their names and ticker symbols before these cryptos blast off.

Act now; this information is too valuable to overlook!

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.


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