A cryptocurrency bull run is a sustained market upswing that pushes the price of crypto assets above their previous highs. These gains can often be attributed to multiple factors. For example, a significant rise in institutional adoption has given the industry a much-needed boost of legitimacy. Meanwhile, lower interest rates during the COVID-19 pandemic and subsequent lockdowns increased demand for alternative investments. Finally, the introduction of blockchain technology to established industries like banking and finance also fueled demand for cryptocurrencies. Regardless of the causes, the last crypto bull run was quite remarkable and it left many investors eager to see another one soon.
According to the AI chatbot ChatGPT, various trends are expected to shape the next crypto bull run. These include a shift toward emphasizing the utility of crypto protocols, meaning that investors will focus on how these technologies can be practically utilized rather than their speculative value alone. In addition, ChatGPT also points to increasing regulatory clarity as a potential trigger for the next crypto bull run. This means that more major financial institutions and funds will be able to invest in the industry without fear of being slapped with stiff penalties or losing their investments.
Additionally, the ChatGPT bot notes that the upcoming Bitcoin halving could be a catalyst for the next bull run. These events, which occur every four years, reduce the number of new Bitcoins that miners can mine and are designed to limit the total supply to 21 million. The previous three halvings have been followed by major bull runs, and the next is set to take place in April 2024.
Another important factor to consider when predicting the timing of the next bull run is the macroeconomic landscape. Inflation, interest rates, and geopolitical events can all impact the price of cryptos and can cause market upswings and downswings. Hence, it’s crucial to keep an eye on these developments and understand how they affect the crypto market.
Crypto investors should also look for projects with strong fundamentals, as they are more likely to thrive during a bull market. This is why it’s crucial to stay up-to-date on the latest developments in the industry and do your homework before investing. By focusing on the underlying technology, use cases, and growth potential of projects, you can identify those with a higher chance of outperforming their peers.
In the case of Ethereum, for example, the next bull run could be triggered by progress made on the platform’s scalability issues. The community has been working hard on Layer 2 solutions like Arbitrum, Optimism, and Polygon zkEVM to improve the scalability of Ethereum and significantly reduce transaction fees. This could be a massive draw for both developers and users of the platform and lead to further increases in its price.