Causes of the Bitcoin Market Correction
(Source: SkyBridge)
The Bitcoin market has recently seen a significant correction, prompting debate over whether the established cycle is changing. Anthony Scaramucci, Managing Partner at SkyBridge Capital, notes that the current trend can still be interpreted through Bitcoin’s traditional four-year cycle.
He believes that some long-term holders opted to take profits as the price neared the $100,000 psychological level, which further accelerated the market’s pullback.
Institutional Capital Is Changing Market Dynamics
In recent years, substantial institutional inflows into the crypto market have caused Bitcoin’s price volatility to diverge from previous patterns.
The most notable changes include:
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Ongoing allocation to Bitcoin by institutional investors
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Increased inflows into Bitcoin ETFs
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Relatively moderated market volatility
Scaramucci points out that while these new factors have reshaped the market structure, they have not entirely eliminated the existing price cycle.
The Four-Year Cycle Still Shapes the Market
The Bitcoin market has long exhibited an approximately four-year price cycle, and many major holders continue to base investment decisions on this model. Scaramucci explains that when market participants widely believe in a recurring pattern, this expectation often reinforces market behavior, ultimately creating a self-fulfilling prophecy.
The Market May Remain Volatile
Looking ahead, he believes Bitcoin’s price could continue to fluctuate in the near term.
His outlook includes:
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Most of 2026 may be marked by ongoing volatility
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Market sentiment may remain unstable
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A new bull market could begin forming in the fourth quarter of 2026
(Source: The Wolf of All Streets)
This suggests the market may need additional time to absorb previous gains and recalibrate investor expectations.
Market Expectations Were Previously Overly Optimistic
At the start of 2025, most market observers predicted Bitcoin could climb to $150,000.
At that time, optimism was largely driven by:
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A more supportive policy environment for crypto in the US
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Increasing regulatory acceptance of digital assets
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Continued institutional capital inflows
However, the market did not unfold as anticipated.
Ongoing Debate Over Whether the Cycle Has Changed
Despite this, the crypto industry continues to debate a key question: Does Bitcoin’s four-year cycle still hold?
Some analysts argue:
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ETFs and institutional capital may be reshaping market structure
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The market is becoming more mature
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New volatility patterns may emerge
Yet, many market participants believe historical cycles remain influential.
Summary
Some market observers view the current Bitcoin correction as a normal cyclical adjustment rather than a structural collapse. While institutional capital and ETFs have altered the market landscape, investor psychology and the actions of long-term holders still shape price trends. In the coming quarters, the Bitcoin market may continue to experience volatility, and the next major bull phase may only arrive once market sentiment shifts again.
