Bitcoin Prices May Plummet Further Amid Four-Year Cycle

Bitcoin's price has been on a downward trajectory since October last year when it hit a record high of over $126,000. According to ZX Squared Capital, another 30% drop is possible as the four-year cycle continues to play out.

The four-year cycle is a pattern in which prices surge, crash, and recover, centered around the quadrennial mining reward halving. Historically, bitcoin's price has peaked about 16-18 months after a halving, followed by a bear market that typically lasts for about a year.

CK Zheng, founder of ZX Squared Capital, believes human psychology is driving this trend. Individual investors tend to behave in predictable ways, buying during hype and selling during panic, which reinforces the boom-and-bust cycle.