Bitcoin (BTC) holders are celebrating the one-year anniversary of the 2024 halving event, as the cryptocurrency has shown remarkable resilience, continuing its upward trajectory despite the global trade tensions and growing economic uncertainties. This surge in Bitcoin's price, climbing over 33% since the halving in April 2024, has been attributed in part to a significant increase in institutional investment, which is accelerating Bitcoin’s traditional market cycle.

The 2024 Bitcoin halving, which took place in April, reduced the reward for mining a new block from 6.25 BTC to 3.125 BTC, thus halving the rate at which new Bitcoin enters circulation. Halving events are a crucial feature of the Bitcoin network, ensuring scarcity—a fundamental characteristic that contributes to Bitcoin’s value. As a result of this reduced supply, Bitcoin’s scarcity has been driving an increase in demand, contributing to its price growth despite challenges from the global economy.

In the face of a looming trade war, particularly between the United States and China, and rising concerns about global economic stability, Bitcoin has proven to be remarkably resilient. As global tensions escalate, many investors view Bitcoin as a hedge against traditional financial risks, further driving its value upward. According to market analyst Enmanuel Cardozo, while Bitcoin has shown resilience, investor sentiment remains cautious amid the current economic environment, especially as uncertainties persist. Cardozo mentioned that many investors are waiting for clearer signals before making significant moves, adding that despite the economic pressures, Bitcoin has continued to perform well.

Furthermore, Cardozo noted that institutional involvement, from firms like Tether and other asset management companies, could further speed up the typical four-year Bitcoin halving cycle. Cardozo predicted that while the traditional halving cycle points to a market bottom around the third quarter of 2025, the increased liquidity and market maturity might push that timeline forward. This accelerated cycle could lead to a quicker price increase, with the market peaking earlier than previous cycles, potentially by mid-2026.

One of the key drivers of this market acceleration is the increasing institutional adoption of Bitcoin, along with the introduction of Bitcoin exchange-traded funds (ETFs). According to Vugar Usi Zade, the Chief Operating Officer of Bitget exchange, institutional buying—especially through Bitcoin ETFs—combined with Bitcoin's rising scarcity due to halving events, could lead to an accelerated rise in Bitcoin’s price. Zade speculates that if Bitcoin breaches the $90,000 mark in the coming weeks, it may retest its previous all-time high.

Historically, Bitcoin has experienced significant price jumps following halving events, but the current cycle appears to be moving faster than anticipated. In January 2025, Bitcoin reached a new all-time high above $109,000, just 273 days after the 2024 halving event, signaling an accelerated market cycle. This rapid price appreciation contrasts with the previous halving cycles, where Bitcoin took 546 days after the 2021 halving and 518 days after the 2017 halving to reach new all-time highs. This shorter time frame suggests that the growing institutional involvement and market maturity are playing a key role in speeding up Bitcoin's price movements.

The combination of growing scarcity, institutional support, and a more mature market environment has positioned Bitcoin for potentially faster growth compared to previous cycles. However, Bitcoin's trajectory remains closely tied to broader financial markets, and its future performance will depend on several external factors, including economic policies and investor sentiment.

As Bitcoin continues to rise, many analysts and traders remain optimistic about the potential for new highs, especially as more institutions enter the market. If the current momentum continues, Bitcoin may soon approach or surpass its previous all-time highs, signaling the continuation of an exciting bull run in the coming months.