What is a crypto supercycle?

Of all the buzzwords of crypto we are already getting very used to in 2025, ‘supercycle’. There’s plenty of debate and discussion as to whether the crypto market is approaching a supercycle, or already in one, but this blog breaks down what a crypto supercycle is, how it’s different from ‘regular’ financial cycles, and why people are talking about it so much right now. 

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What is a crypto supercycle 

A crypto supercycle is the term of an extended period of growth and sustained upward momentum for the cryptocurrency market. This differs from short-term cycles fuelled by a time-sensitive hype or from a surge of speculation. These cycles are sustained, long-term and indicate strong fundamental market strength. 

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Supercycles and traditional economics

Traditional economics are also marked by supercycles. These usually accompany major changes in global politics or economics, or big technological leaps. Supercycles are characterized by strong GDP growth, high employmen and low inflation. A historical example of a supercycle is post World War Two, when peacetime led to rapid growth in Western nations and a large boost for emerging economics in Asia and South America. This supercycle came hand in hand with a baby boom, and technological innovation in areas suhc as aircraft, automobiles and defence - thanks to necessity - provided increasing mobility, transport and jobs. This period is believed to have lasted until the 1970s. There have also bee 

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Why do some believe we are in a crypto supercycle?

The crypto market is on a record high as of January 2025. This, combined with signals such as Bitcoin’s price hitting $100,000, governments stockpiling Bitcoin in the form of reserves - Ohio, Texas, Oklahoma, Brazil and Japan being some examples of strategic Bitcoin reserves created by governmental bodies - and institutional adoption of crypto. Markers such as prominnece of ETFs, clearer regional and global regulations, and increasing demand, all reflect similar evidence of a supercycle in traditional economics. 

Like commodities supercycles of the past, this supercycle is believed to be marked by the rise of digital assets. This digital asset supercycle is predominantly focussed on Bitcoin and its meteroic rise, as well as the new very pro-Bitcoin President of the United States. Some compare it to the gold supercycle of the 1970s. 

In a similar way to other supercycles, a lot of defining the start and end of a supercycle comes down to psychological and social belief. This is particularly true of a crypto supercycle, as the markets are so moulded by quick bursts of hype, sudden trends and news spreading like wildfire. The addition of social media to the word of mouth nature of supercycle characteristics play a major role. 

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2025 - ‘the’ year for crypto

All of the macro and micro trends we are seeing in the cryptocurrency are likely to come to a head in 2025. Whether this year will mark the start of a supercycle or not, it is important to understand how the same characteristics that could be used to argue for the start of a supercycle are still important to consider regardless. 

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