Petri Redelinghuys of Herenya Capital Advisors on the Bitcoin’s cycles.
Looking at the current state of the Bitcoin market, one might assume that Bitcoins will soon be a thing of the past. This feeling could be amplified with a look at where the king of cryptocurrencies was less than a year ago, when it reached its all-time high in early October of 2026. Is this the end for the world’s most well-known crypto, or is there more to it? We’re here to shed some light on the matter.
Right: Bitcoin around the time of its two highest peaks. Left: Bitcoin since February.
The Cyclic Nature of Bitcoin
Ever since 2009, when the Bitcoin blockchain was launched, the currency has moved in a pattern of 4 year cycles of starting low, gathering momentum, rising and peaking, before facing a massive correction that sends the coin back to the beginning of its cycle. With last year’s peaks, it’s safe to assume that we are currently at, or returning to, the beginning of the cycle.
Growth Catalyst
But why would Bitcoin gain momentum again? The simple answer is that the Bitcoin mining reward is halved, which makes it harder and harder to create new tokens, driving up the prices of both new and existing Bitcoins in the process, and creating interest in the Bitcoin market in the process.
The Near Future
The South African Reserve Bank has recently made a statement regarding cryptocurrency. In the statement, the bank decried the usage of stablecoins and other cryptocurrencies as a substitute for regular money. With South Africa as one of the world’s leading countries in the cryptospace, such an action by the Reserve Bank should pressure Bitcoin, working as a catalyst to further quicken the drop, which, according to the pattern, should stop after an approximate 80% correction, at which point the halving of the blockchain rewards should kick in and move it to the next stage of the cycle.
The magic happens in our community!
We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.
