Liquidity and Attention Cycles
While many market participants bear a little bit of PTSD when they hear “this time is different”, more traders and analysts are calling for the death of the four-year cycle, and instead are proposing mini-cycles, fueled by high liquidity and low liquidity conditions.
While it's mostly hypothetical, this theory presents the idea of BTC continuing to trend upwards over time, and while volatility is a guarantee in this asset class, BTC (in theory) would be protected from the usual 70%-80% drawdown we’ve become accustomed to over the last decade. BTC would trend up aggressively during periods of high liquidity and attention, while it would chop downwards in low liquidity environments.
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