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BITCOIN'S CYCLES · SMALLER EVERY TIME

Every Bitcoin bull run has gained less than the one before it. Not roughly — almost on a straight line. Here is how much smaller, and whether knowing that buys you anything.

0×0.0×

the bull-run gain, top over bottom, from the 2013 cycle to the 2025 one — a 0×-fold collapse in four cycles.

We fit the fade, then test it honestly. The good news: estimating the next cycle’s size is a real skill — the fading law beats “just repeat the last cycle” by about 2.6×. The honest catch: it tells you the boom’s size, not the price — so this is a direction-and-size story, never a target.

An observation about a fading pattern, not advice. Built from Bitcoin’s full daily history (2011 → mid-2026). Even shrunk, the projected path from today leans mildly up — but it rests on just four cycles, and that tiny-sample caveat is kept loud throughout.

PART 1 — THE SHRINK

Each bull run gains less than the last — and almost on a straight line.

Start with the plainest measure of a Bitcoin bull market: how many times bigger the top was than the bottom it climbed from. Across the four cycles in the record, that number falls off a cliff — about 604× bigger in 2013, then 107× in 2017, 21× in 2021, and just 7.9× by the 2025 top.

What makes it more than a curiosity is the regularity. On a multiply-by-ten scale, the four gains drop by a near-constant fraction each cycle — a steady fade, not a random walk down. That fade is the whole report.

cycle_decay

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The bars shrink by roughly the same factor every cycle, so the amber fade line fits them closely. Carry that fade one step on and the next cycle’s gain projects to only about 1.5× (a wide 1.0×–2.1×) — much smaller still. A near-1× “cycle” is really the law saying the four-year boom is fading out, so read the direction (smaller), not the exact number.
THE GAIN, CYCLE BY CYCLE — TOP OVER THE PRIOR BOTTOM
0×2013 cycle — the bull run that put Bitcoin on the map
0×2017 cycle — already a sixth of the prior gain
0×2021 cycle — smaller again, by about the same factor
0.0×2025 cycle — the smallest yet, and the fade is steady
PART 2 — BOTH WAYS

It is not just the booms. The busts are getting milder too.

A shrinking boom on its own could just mean Bitcoin is topping out. But the other half of each cycle — the crash that follows the top — is easing on the same schedule. The 2014–15 bust took roughly 85% off the top; the 2022 bust, the mildest of the three, took about 77%.

So the right picture is not “the rocket is running out of fuel.” It is a whole swing — up and down — that compresses each cycle. That is what lets the forward projection in Part 3 narrow the downside as well as the upside, instead of bracing for another 85% wipeout.

drawdown_decay

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Each bar is a cycle’s worst peak-to-bottom fall, dipping down from zero — and they are getting shallower (≈ −85%, −84%, −77%). The teal bar carries the typical −84% drop forward as a planning figure, and its whisker spans where past crashes actually landed (−77% to −85%). A milder bust is the mirror image of a smaller boom: the four-year swing is simply losing amplitude in both directions.
PART 3 — THE PROJECTION

Where the fading cycle points from here — leaning mildly up, held as a wide range.

Today Bitcoin is around $62,000, about eight and a half months past the October-2025 top, in the early bear-and-recovery leg. To project forward we replay each prior cycle from the same point in its life, rebased to today’s price — then shrink the up-swing to match the fading cycles (and the milder busts from Part 2).

Counter to a naïve “crash repeat,” two of the three analogues were already recovering by this phase. So the middle of the range tilts mildly up — but the three paths plainly disagree, and that disagreement is the honest signal.

forward_cone

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The blue band is where about 8 in 10 of the shrunk paths land; the dashed line is the middle. A year out the middle sits near $69K (range $45K–$107K); two years out near $130K ($90K–$187K). The thin slate lines are the three prior cycles replayed — they fan apart, which is why this is a range, never a target.
THE DECAY-ADJUSTED PROJECTION FROM TODAY (~$62K)
$0K1-year middle of the range (≈ mid-2027)
$00K1-year range — about 8 in 10 paths land inside
$0K2-year middle of the range (≈ mid-2028)
$00K2-year range — wider, and the upside is real too
PART 4 — THE RECKONING

The honest win, and the honest split — stated side by side.

A pattern that fits the past always looks convincing. The real test is held-back: stand before a cycle’s top, predict it using only the cycles that came before, and check the error. We run that test twice — once for the cycle’s size, once for the price a year or two out — and the two come back with opposite verdicts.

That split is the most important thing in this report, so we show both and let neither hide the other.

amplitude_backtest

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The honest WIN. Predicting the 2021 then 2025 gain from only earlier cycles, the fading law lands close (≈ 1.1× and 2.0× off) while “repeat the last cycle” overshoots wildly (≈ 5.0× and 2.7×), because every cycle was smaller than the last. Across both, the fading law is about 2.6× more accurate — a real, reportable size skill.

price_skill

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The honest SPLIT. Knowing the size shrinks does NOT pin down the price. A year out, the cycle-analogue path is actually worse than a flat coin-flip that assumes today’s price holds (≈ 2.3× off vs 1.3×); two years out they roughly tie. So: a direction-and-size story, never a near-term price target.
THE SCORECARD — HELD-BACK, ON THE CYCLES WE COULD ACTUALLY TEST
0.0×more accurate than “repeat the last cycle” on the next gain — the win
0the number of real size tests behind that — encouraging, not proven
losesthe 1-year price path vs a flat coin-flip — the split
0completed cycles the whole study rests on — the hard ceiling
PART 5 — PUTTING IT TOGETHER

A real, fading pattern — solid on size, silent on next year's price.

This is not advice to buy or sell, and it is not a price target. It is a measurement: Bitcoin’s cycles are shrinking on a remarkably steady schedule, that shrink is a genuine edge for guessing the next boom’s size, and it buys nothing for guessing next year’s price. Holding both of those at once is the whole point.

The shrink

Every Bitcoin bull run has gained less than the last — about 604× bigger in 2013, then 107×, 21×, and just 7.9× by 2025 — and almost on a straight line on a log scale. The log-gain fades by a near-constant fraction (~0.69×) each cycle. It is the single most regular feature of Bitcoin's cycles in this data.

Both ways

It is not just the booms. The crashes are easing too — about −85%, −84%, −77% — so the whole four-year swing is compressing, up and down. That is why the forward range can narrow both edges rather than brace for another 85% wipeout.

The honest win

Held back, the fading law predicts the next cycle's SIZE about 2.6× more accurately than 'just repeat the last cycle' — the very assumption that overshot every cycle. That is the report's real contribution: it quantifies the shrink that the full-amplitude cycle read keeps missing.

The honest split

Knowing the size shrinks does NOT give a near-term PRICE edge. The cycle-analogue path loses to a flat coin-flip at one year and only ties it at two. So this is a direction-and-size story — never a price target.

The balanced read

Even shrunk, the projected up-leg leans mildly up: a 1-year middle near $69K ($45K–$107K) and a 2-year middle near $130K ($90K–$187K), held as wide ranges. The bullish P90 tail is real; so is the downside edge. A calibrated band, not a call.

LIMITATIONS — READ THESE
  • The whole study rests on four completed cycles and, where it is back-tested, just two real size transitions. Four points can show a direction; they cannot pin down a law. Today's cycle would be the fifth.
  • The fade must eventually flatten — a steady shrink keeps heading toward a near-1× 'cycle,' which is really the four-year boom fading out. The one-step projection of the next gain sits at the edge of where the pattern still makes sense, so read it as 'much smaller,' not as a literal 1.5×.
  • The near-term price path is the weakest piece here: out-of-sample it loses to assuming today's price simply holds, over a 12-month horizon. We surface it only as a wide range, and say plainly it carries no edge.
  • With only two or three out-of-sample windows per horizon, there are too few points to calibrate an honest coverage number for the price band. We report that as not-estimable, not as a passed test.
  • Cycle structure can break. Spot ETFs, a maturing market, and a larger base may be flattening the cycle for reasons no four-point fit can foresee. This is descriptive research about a fading pattern, not financial advice.

Descriptive research, not financial advice. Bitcoin is volatile and has lost three-quarters or more of its value four times in this dataset. A pattern measured on four cycles is an observation about the past, not a promise about the next one.

Appendix — all 5 charts & the method →