Bitcoin ( BTC) is programmatically set to have a halving cycle roughly every four years, which cuts the supply of new coins awarded to miners in half. The halving sends a supply shock to the market, and as seen in the past three cycles, this under- and overvaluation in the market is partially responsible for the dramatic ups and downs.
In 2020, Dan Held, a Bitcoin educator and marketing adviser for Trust Machines, predicted that Bitcoin would eventually see a 'supercycle,' citing the increased value of the network as adoption grows ( Metcalfe's law), increased scarcity due to the halving and increased institutional adoption.
Institutional support was growing so much during the last leg of the cycle that exchange-traded funds (ETFs) were approved around the world. The first physically-backed BTC ETF was launched in Canada in February 2021 by Purpose Investments.
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