Bitcoin is experiencing a significant transformation as institutional adoption and the approval of U.S. spot Bitcoin ETFs in early 2024 reshape its market dynamics. Traditionally driven by a four-year halving cycle, Bitcoin's valuation is now increasingly influenced by off-chain liquidity and macroeconomic factors. This shift is establishing a new two-year cycle, altering Bitcoin's price behavior, volatility, and overall market structure.
Bitcoin's Market Dynamics Shift with ETF-Driven Two-Year Cycle
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