Crypto & The 4-Year Cycle | Jason Redekopp
Crypto & The 4-Year Cycle

The 4-year cycle
isn't really a calendar.

Crypto has repeatedly moved in a roughly four-year rhythm. But I don't think the useful way to understand it is: "Bitcoin halves, wait 18 months, number goes up." The bigger story is a combination of liquidity, monetary policy, election cycles, investor risk appetite, positioning, history — and millions of people expecting roughly the same pattern.

History can create a roadmap. It does not create a guarantee.
Reset
Expansion
Euphoria
Contraction
4-Year
Cycle
More than the halving
The Big Picture

A cycle of money, risk and human behaviour.

The halving matters. But it sits inside a much larger macro and psychological cycle.

1

Liquidity changes

When financial conditions loosen and more capital becomes available, investors generally become more willing to move outward on the risk curve.

2

Bitcoin reacts first

Bitcoin is usually the deepest and most liquid crypto asset, so fresh risk capital often concentrates there before spreading into the rest of the market.

3

Risk moves outward

If confidence builds, capital can rotate toward ETH, large-cap alts, smaller alts and eventually the most speculative corners of the market.

4

Then it resets

Excess leverage, tighter liquidity, weaker demand or simple exhaustion can reverse the process. Risk gets pulled back and the market starts another reset.

The Important Part

The halving isn't a magic clock.

Bitcoin's halving is real and historically important. But treating it as the only cause of the cycle misses what is happening around it.

The halving

Roughly every four years, the new Bitcoin paid to miners is cut in half. That reduces the rate of new supply entering the market.

But the shock is smaller now

Each successive halving removes less new supply in absolute terms. Institutional flows, ETFs, derivatives and global capital can now overwhelm the daily miner supply much more easily than in Bitcoin's early years.

The timing overlaps macro

The four-year Bitcoin rhythm also overlaps with monetary cycles, business cycles and the U.S. presidential / midterm election calendar.

So I watch the whole system

Halving. Liquidity. Rates. Dollar conditions. Elections. Regulation. Risk appetite. Positioning. And where capital is actually flowing.

The Election-Cycle Angle

Four years shows up outside crypto too.

I think this is one of the more useful ways to look at the cycle. Bitcoin's rhythm exists inside a political and economic system that also operates on a four-year U.S. presidential cycle, with midterm elections sitting in the middle.

Governments don't control crypto prices. But policy matters to the environment around risk assets: spending, deficits, regulation, taxes, trade, monetary pressure and the political incentive to keep an economy healthy all influence financial conditions.

Midterm years can be especially messy because uncertainty rises before voters decide the balance of Congress. Markets are trying to price policy, growth, inflation and the next phase before the political picture is fully known.

That does not mean "midterms = crypto rally." It means the election calendar is one more repeating force that can line up with the broader liquidity and risk cycle.

What Really Matters

Crypto loves liquidity.

The easiest mental model: when money becomes easier and investors feel safer taking risk, crypto has historically been one of the places that can respond hardest.

When liquidity improves

Conditions can become more supportive for risk assets when money is easier to access and the opportunity cost of holding speculative assets falls.

  • Rates stop rising or begin falling
  • Real yields ease
  • The dollar weakens
  • Credit conditions improve
  • Global money supply expands
  • Investors become more willing to take risk

When liquidity tightens

The opposite environment can pull capital away from speculative assets even when the long-term crypto story has not changed.

  • Rates rise or stay restrictive
  • Bond yields climb
  • The dollar strengthens
  • Credit becomes more expensive
  • Leverage gets reduced
  • Investors move back toward safety
The Reflexive Part

Belief in the cycle can help create the cycle.

Markets aren't machines. They are groups of people reacting to each other.

Everyone knows the pattern

The halving cycle is no longer obscure. Traders, funds, influencers and retail investors all know the historical playbook.

Capital gets positioned early

If enough investors expect a future expansion, some buy before it arrives. That changes price, sentiment and momentum in the present.

Price attracts attention

Rising prices create headlines. Headlines attract new buyers. New buyers create more rising prices. That feedback loop can become powerful.

Risk appetite broadens

Once Bitcoin feels "safe enough," people often start looking for more upside in assets further out on the risk curve.

!

Consensus gets dangerous

If everyone expects the exact same top at the exact same time, the market has a habit of changing the script.

The pattern evolves

ETFs, institutions, stablecoins, regulation and global adoption can stretch, compress or reshape a cycle without eliminating cyclicality itself.

August 2026

So where are we right now?

To me, this looks less like a clean end-of-cycle answer and more like a market waiting for several big pieces to resolve.

Rates

Still restrictive

The Fed's target range remains 3.50%–3.75%. Recent softer data has reduced immediate pressure for another hike, but policy has not suddenly become easy money.

Midterms

Uncertainty is building

The November 2026 U.S. midterms can change the balance of Congress and the policy backdrop markets are trying to price ahead of time.

Crypto policy

Progress, but not finished

U.S. regulators are pushing a more crypto-friendly framework, while major market- structure legislation remains politically unresolved.

Risk

Macro is still messy

Elevated bond yields, geopolitical tension and inflation uncertainty can still interrupt any clean risk-on move.

My read:

This is exactly why I don't like declaring the cycle "dead" simply because an old calendar template didn't produce a perfect blow-off top on schedule. The conditions that matter are still moving.

What I Am Watching Next

The next move needs confirmation.

I don't need a date. I need the pieces to start lining up.

1

Monetary pressure stops getting worse

A sustained shift away from tighter policy would remove one of the biggest headwinds facing speculative assets.

2

Liquidity starts improving

Easier financial conditions, stronger global liquidity or falling real yields would make the macro backdrop more supportive.

3

Political uncertainty gets resolved

Once the midterms are known, markets can stop guessing at one major variable and begin pricing the actual policy landscape.

4

Bitcoin confirms risk appetite

I want to see sustained strength and capital entering the market — not simply a one-week rally driven by leverage.

5

Then watch rotation

If Bitcoin stabilizes and confidence grows, the important question becomes whether capital begins moving into ETH, large-cap alts, smaller alts and higher- beta narratives.

A Better Mental Model

Think in phases, not dates.

This is how I prefer to think about the four-year cycle.

Reset / disbelief

Leverage is gone. Interest is low. Bad news feels permanent. Strong projects often trade far below prior expectations.

Accumulation / improving liquidity

Conditions slowly improve before the public narrative does. Smart money begins taking risk while most people are still cautious.

Expansion / Bitcoin leadership

Bitcoin strengthens, confidence returns and capital begins entering crypto in size.

Rotation / alt participation

If the cycle broadens, investors increasingly chase higher-beta assets and narratives.

Euphoria / excess

Everyone suddenly looks like a genius. Leverage rises, valuations detach from reality and people start believing the cycle can only go one direction.

Contraction / reset

Liquidity, demand or confidence rolls over. Capital moves back toward safety. The market eventually clears the excess and the process starts again.

One Important Caveat

This cycle can absolutely be different.

"Different" does not have to mean the cycle disappears.

Bitcoin is now a much larger asset. Institutional ownership is deeper. Spot ETFs, derivatives, corporate balance sheets, stablecoins and traditional finance all change how capital enters and leaves the market.

That could make future cycles longer, less symmetrical, more macro-driven and less dependent on the halving itself.

Peaks can arrive earlier or later
Drawdowns can happen inside a bull regime
Bitcoin can outperform while alts lag
Liquidity can overpower halving timing
Regulation can change capital flows
Consensus can pull timing forward
My Take

I still believe in the cycle. I just don't believe in a stopwatch.

The four-year framework is useful because it reminds us that markets move through recurring phases of fear, liquidity expansion, risk taking, speculation and reset.

But I think calling it simply "the Bitcoin halving cycle" is too narrow now.

The more interesting question is whether the same forces that helped create prior cycles are beginning to line up again: improving liquidity, a shift in policy, political resolution, rising risk appetite, stronger crypto market structure and capital moving further out on the risk curve.

If those things start happening together, the fact that the old calendar has been imperfect doesn't bother me very much.

And if they don't happen, a date on a four-year chart isn't going to save the thesis.

Follow the conditions, not the countdown.

Learn the historical cycle — then watch liquidity, policy, Bitcoin strength, risk appetite and capital rotation to tell you where we actually are.

Important:This page is provided for general educational and informational purposes only and does not constitute financial, investment, tax or legal advice.Historical market cycles do not guarantee future results. References to liquidity, elections, monetary policy, Bitcoin halvings, market phases or possible future outcomes are intended to explain a framework for understanding crypto markets and should not be interpreted as a prediction that any particular market move will occur.Cryptocurrency and digital assets involve substantial risk. Always do your own research and make decisions appropriate for your own financial situation and risk tolerance.