Bitcoin's Bear Cycle Looks Familiar — And That Might Be The Bullish Case

Bitcoin has fallen from a record high of roughly $126,080 in October to trade recently in the low-$60,000s — a decline of nearly 50% that has rattled sentiment. But it may just be business as usual. 

According to a Thursday report from asset manager VanEck, Bitcoin’s current slump tracks the asset’s historical four-year halving cycle, in which mining rewards are periodically cut in half, tightening new supply and often preceding a bear phase. The firm framed this downturn as a recurring feature of Bitcoin’s market structure rather than a break from it.

VanEck’s GEO framework — which tracks Global Liquidity, Ecosystem Leverage, and On-Chain Activity — currently shows two of three signals reading neutral, with ecosystem leverage in constructive territory. The firm says that combination points to early signs of a bottom forming, and that it may be time to begin scaling into positions.

Separate research from blockchain analytics firm CryptoQuant points in a similar direction. The firm’s analysts highlighted on-chain data showing that long-term Bitcoin holders — typically the market’s steadiest, most loss-tolerant cohort — are now sitting on deeper unrealized losses than the market overall, based on adjusted Net Unrealized Profit/Loss (NUPL) data.