When is the next crypto bull run?
It’s a common question for anyone interested in investing in cryptocurrencies. This is because, like traditional asset markets, a bull run in the crypto market can result in substantial returns for investors.
The answer to the question is that a crypto bull run can happen in a number of ways, depending on the asset and investor sentiment. In general, a bull run happens when the price of a specific asset increases rapidly and is expected to continue increasing in value.
A bull run can be triggered by many different factors, including a FOMO (fear of missing out), news and events related to the cryptocurrency, a lone whale, and so on. However, some factors may be more likely to trigger a bull run than others.
Halving & Supply Reduction
One of the most commonly recognized triggers for a crypto bull run is the halving event. The halving occurs every four years, when block mining rewards are reduced by 50%. This decreases the amount of Bitcoin miners can mine, which in turn, makes the crypto more scarce on the market.
According to economic theory, the price of an asset will usually increase when the supply of that asset declines significantly. It’s this supply reduction that has fueled a bull run in the crypto market in each of the past four years.
Currently, it appears as though the next halving event will occur in 2024. The event will cut the number of bitcoins in circulation by half, which should propel the crypto’s price higher.
The next halving should be a sign that the crypto market is about to embark on a new bull run, according to experts.
“Bitcoin is at a cyclical ‘top’, which suggests that it will likely experience a halving in 2024. This would signal that a significant rally is about to begin, and could push prices up to $100,000 in the near future,” Anthony Scaramucci, founder of SkyBridge Capital, told CNBC last week.
A halving will also make bitcoin more expensive for miners, as they will have to pay more for electricity and the upkeep of their mining machines. Consequently, this would entice more miners to enter the market and drive up demand.
There’s a lot of volatility in the crypto market, so it’s not surprising that a bull run can take a while to happen. But if it does, it’s important to stay patient and be aware of potential pitfalls.
The market is still chilly, but that shouldn’t prevent you from investing in cryptocurrencies. After all, markets move in cycles, and understanding how they work will help you keep your investment portfolio on the right track and avoid being taken advantage of by a bear market.
If you’re interested in making a bet on the next crypto bull run, here are some promising assets to consider:
Meta Masters Guild
A popular Web3 gaming platform that offers several mobile-based games is gearing up for an initial coin offering (ICO). This is expected to generate high growth and will likely lead to a bull run in the future.