Corporate Bitcoin Buying Frenzy: Is This the End of Crypto’s Four-Year Cycle?

Wall Street's Bitcoin binge reshapes crypto's DNA—permanently.

The Institutional Takeover

Corporate treasuries now hoard Bitcoin like digital gold reserves. MicroStrategy's billion-dollar bets sparked a domino effect—Tesla, Square, and countless private firms joining the parade. Traditional finance giants can't ignore the momentum either.

Breaking the Pattern

Bitcoin's predictable four-year cycle—halving events driving supply shocks followed by price surges—faces unprecedented pressure. Institutional demand creates a new fundamental layer that could smooth out volatility and disrupt retail-driven patterns.

The New Calculus

When publicly traded companies treat Bitcoin as a reserve asset, quarterly earnings calls become de facto crypto conferences. Balance sheet allocations create constant buy-pressure that dwarfs miner selling—changing the very mechanics of market cycles.

Of course, Wall Street only embraces volatility when there's a commission fee attached. The real question isn't whether institutions will change Bitcoin—but whether Bitcoin will change institutions first.

The current state of Bitcoin

Crypto expert Tom Lee recently highlighted how sustained capital inflow over the last two years is creating counter-cyclical market elements. This comes from the ongoing demand for bitcoin ETF products, along with corporate buyers, shifting away from retail dominance. He believes that two tests are now imminent. According to the cycle, Bitcoin should continue on a declining trend next year. The other is that it may decouple from the equity markets with which it has maintained a strong link.

So far, this has not yet been seen. Bitcoin remains aligned with the NASDAQ, with the Bitcoin price live currently showing $112,907. Binance pointed out that last week, BTC slipped 1%, while gold outperformed with a 3.9% gain, reaching a new all-time high. The S&P 500 rose slightly by 0.3%. Despite speculation about Bitcoin becoming a safe-haven asset, its high volatility and weak correlation with treasury bonds make this unlikely. This has also been seen with Ethereum, suggesting both are still typically in the risk asset class.

Other prominent crypto experts have echoed this view. Pierre Rochard is one who recently took to X to suggest that the traditional cycle may have lost its predictability. He pointed out that this is because there is only 5% of the Bitcoin supply left to be mined. This makes cutting the reward less disruptive than it used to be, which previously created huge ripples in the flow of product.

Analysts argue that halving no longer dominates Bitcoin’s price cycle. Instead, investors’ sentiment, global economic conditions, and institutional buying now play a stronger role.

What could start a further bull run?

The only real move that could ignite a fresh bull run is the easing of macroeconomic conditions. This WOULD typically be seen as a rate cut from the Federal Reserve. The bigger this is, the more quickly a bull run may spark. Even the smallest of cuts could be a boon, with a 90% probability prediction of a 0.25% cut. Many have been highly critical of the Fed’s decision to hold rates at current levels, while other central banks have cut them during 2025. However, without it, the opposite could be true.

According to crypto exchange Binance, a historical analysis of the 2019 and 2024 Fed rate cut cycles has yielded no consistent positive impact on Bitcoin. In their weekly updates, they noted that price reactions are often followed by a “buy the rumor, sell the news” pattern. With a lack of a clear trend, there were correlation coefficients between rate cut expectations and Bitcoin, mostly fluctuating between -0.5 and +0.5.

Tom Lee himself has weighed in on the rate cut debate, saying that a cut could push Bitcoin’s high as $200,000 by the end of the year. Many are already treating a rate cut as a finalised deal, with even Jerome Powell hinting at them last month. If you’re following Bitcoin closely, this means even minor policy changes could have a significant impact on the market.

Signs the four-year cycle remains

While predicting the death of the four-year cycle may be premature, it seems that it may still be alive, albeit weakened. This has been seen in the cycle duration and long-term holders’ profit-taking patterns. Polls have also stated that around 70% of investors are predicting a decline to $105,000 before any further upmarket movements occur.

A key level will be a breach of $100,000 as a worst-case scenario. However, others are going further, predicting a 30% drop from its all-time highs. Historical correlation patterns and typical market timing suggest this could happen in the last week of September.

Binance pointed out that the European Central Bank’s policy decision will have a huge impact. They then added that U.S. CPI data on September 11 may carry more weight for markets than the widely expected September Fed cut. For investors, this means Bitcoin may remain range-bound until these larger economic shifts are clarified. We may actually see very little at all until bigger shifts are seen in the US and wider global economy.