When is the Next Crypto Bull Run?

when is the next crypto bull run

When is the next crypto bull run?

Throughout the history of the cryptocurrency market, there has been a clear pattern of boom and bust cycles. The bull runs, in which cryptos like Bitcoin skyrocket to new highs, typically last for months before the price collapses in a bear market.

When the next crypto bull run starts, it will be triggered by a variety of factors. However, a few common ones include:

Supply and Demand

The first factor that usually triggers a crypto bull run is supply and demand. During times of uncertainty, such as the one we are currently experiencing in 2022, the number of people looking to invest in alternative assets like cryptos rises.

This is because slow-moving, low-return assets are less popular during uncertainty and are replaced by faster-moving assets with higher returns. This is especially true for the crypto industry because cryptos are still relatively new.

In addition, a bull run often occurs after the halving of a crypto, which cuts miners’ rewards for validating transactions in half. Since there are only 21 million bitcoins in circulation, the halving typically leads to an increase in demand and thus, an increase in the price of a given cryptocurrency.

Liquidity Infusion

The recent inflow of liquidity into the cryptocurrency market from China, which is reopening its 3-year covid lockdown, is another key contributing factor to the rally that began last week. This liquidity injection could potentially be a major force driving the prices of many tokens to multi-fold heights as investors flock back into the market.

While it may take time, China’s recent inflow of US$92 billion is a significant catalyst that could push the entire market to multiple fold heights. This is because the China crypto community is already on a different level when it comes to alpha calls, which can lead to a major inflow into native projects.

If the crypto market can continue to receive this type of liquidity inflow, the price action should start to resemble the pre-2020 bull run. This would be the result of a flood of capital into the crypto market from all sources, including the Chinese pump whales created before 2020.

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