Bitcoin’s Weirdest Cycle EVER?! 🤯

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So, Bitcoin. It’s gone up. Quite a lot, actually. But in a strangely…measured way? You see, for those of us who’ve been observing this digital folly for a while (and frankly, I mostly observe it with a mixture of fascination and mild horror), things are supposed to happen in a certain order. There’s a build-up, then a mad, frothy scramble upwards, like a caffeinated squirrel trying to climb a greased pole. This time? Not so much. It’s been more of a steady, determined amble. 🤔

Apparently, some crypto analyst named Sykodelic – a name that suggests a particularly enthusiastic psychedelic experience – has figured out why. And it’s not because everyone’s suddenly discovered inner peace and decided Bitcoin is just…too much. No, it’s something far more unsettling: the plumbing is different this time. The very structure of how money moves around is messing with the usual Bitcoin boom-and-bust timetable.

The Great Liquidity Mystery

Everyone’s been scratching their heads, wondering if the party’s already over. Has Bitcoin peaked? Is this it? Is the dream of becoming a digital millionaire slowly dissolving into a cloud of regret? The answer, according to Sykodelic, is… maybe not. It’s less about the cycle being over and more about it being…delayed. Think of it like a very stubborn garden party that refuses to start on time. 🐌

Back in 2020-2021, when Bitcoin was last doing its ‘going to the moon’ impression, it coincided with a massive flood of money sloshing around the financial system. It was like trying to contain a tsunami with a bucket. Now? The money taps are barely dripping. And yet, Bitcoin has still managed to crawl its way up to a rather impressive altitude. How perplexing!

This chart (you’ll notice charts are always involved in these things) shows that the usual pattern has been flipped on its head. Normally, liquidity peaks with the price. This time, liquidity has been stubbornly refusing to join the fun, clinging to levels reminiscent of the bleak days of 2022. Imagine going to a party and finding out the cheese and crackers haven’t arrived yet. It’s just…disappointing. 🧀

Bitcoin somehow managed to lumber from $15,000 to over $100,000 – which, let’s be honest, is still a rather large number – with barely any real liquidity backing it up. It’s like a toddler managing to move a grand piano. It shouldn’t be possible.

So, What Does It All Mean?

So, are we doomed to a slow, grinding halt? Sykodelic says no. He argues that Bitcoin isn’t easing into a ‘sell everything now’ phase, it’s just…bouncing. Bouncing from a particularly unpleasant patch of low liquidity. Essentially, it’s taking a breather before another attempt to conquer the financial world. 🧘‍♀️

Turns out, things have changed. We now have these Spot Bitcoin ETFs, which are apparently quite good at funneling money into the system. Plus, some countries are actually embracing Bitcoin, which is a bit like a sensible parent finally admitting their teenager isn’t completely irresponsible. And all this excitement about Artificial Intelligence is soaking up all the money in the stock market, leaving the crypto markets feeling a little… neglected. Rude! 🤖

The good news (according to the chart, of course) is that liquidity is starting to perk up. As governments stop tightening the screws and start loosening them again, more money might actually find its way into Bitcoin. And then, maybe, just maybe, we’ll finally get that glorious, parabolic explosion we’ve all been waiting for. Or maybe not. Honestly, with Bitcoin, who really knows? 🤷

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2026-01-06 05:12