True traders understand that market volatility itself is not the problem—the real issue is the inability to see through the structural opportunities behind the fluctuations.

By early 2026, Bitcoin has just experienced a correction but stands at an interesting crossroads: the fundamental, capital, policy, and technical forces are resonating in sync. The deep logic submerged by recent volatility is brewing the next level of upward movement.

**How powerful is the halving cycle?**

Bitcoin’s halving mechanism is an embedded "artificial scarcity" design in the protocol, reshaped every four years. The April 2024 halving cut the block reward to 3.125 BTC, reducing the annual inflation rate to 0.225%—a figure that already surpasses the inflation rates of traditional precious metals like gold and silver.

Looking at history: after the 2012 halving, it surged by 8200%; in 2016, it was 285%; in 2020, it reached 600%. The first wave of market movement after last year’s halving was somewhat sluggish, but by May 2025, it had already gained 83%, indicating that this logic remains effective.

On-chain data is even more striking. Currently, 74% of circulating Bitcoin is locked for over two years, and 75% of assets haven’t moved in the past six months. Everyone is accumulating, yet the tradable floating volume is shrinking. What does this mean? It means that when new funds come in, the friction to push prices higher is greatly reduced. And as the anticipation of the next halving in 2028 gradually heats up, this scarcity premium will further expand.

**Institutional funds are shifting from allocation to belief**