The crypto market is infamous for its volatility, but it is also known for its occasional bull runs. These bursts of optimism and price growth usually last from weeks to months. They can be an excellent time to invest, especially if you know what factors are likely to trigger them.
The next crypto bull run could be triggered by a combination of several factors. The most obvious one is the pending approval of Bitcoin ETFs by major investment firms like BlackRock. If this happens, it would send BTC prices through the roof. Another factor is increased regulation, which could lead to more institutional investors entering the space. Lastly, the adoption of decentralized finance (DeFi) technologies is likely to drive demand for their native tokens, such as Chainlink’s LINK.
In addition to these, the next cryptocurrency bull run could be triggered by a significant increase in global liquidity. This is especially true if central banks raise interest rates enough to keep inflation in check without sparking a recession. This should lead to an increase in risk assets, including crypto, as investors rush to diversify their portfolios.
Bitcoin has endured a brutal bear market for the past two years, but it may be getting ready to enter its next bull phase. According to analysts at CryptoCon, the asset’s price cycles tend to occur in four-year intervals. This means that it is due for its next rally, which will likely begin around April 2024.
Many traders and experts have pointed to the upcoming halving as a possible catalyst for the next crypto bull run. This is because the programmed event reduces the amount of Bitcoin miners are rewarded for each block they mine, which decreases the overall supply of new Bitcoins and creates scarcity. However, it is important to note that previous halvings have not necessarily catalyzed bull runs single-handedly. Other factors, such as macroeconomic fundamentals and market sentiment, also played a role.
While it’s impossible to predict exactly when the next crypto bull run will start, some analysts believe that it will be in late 2024 or early 2025. This is based on the fact that bitcoin bull markets are often tied to a process called “halving,” which takes place every few years. Miners on the Bitcoin network use powerful specialized computers to solve complex mathematical puzzles that validate transactions on the blockchain and are rewarded in bitcoin as a result. This is expected to occur in 2024, and it has typically been a catalyst for bitcoin bull runs in the past. However, there are a number of other factors that could play a role as well, such as increasing investor pessimism.