Can the crypto bull market last? (2024)

The headlines ‘bulls are charging’ and ‘bears are prowling’ are usually reserved for big movements in stock markets. Yet, they are as true for crypto as they are for equities, as we witness a simultaneous rally in both asset classes. Quite naturally, investor talk has centered around some of the prominent crypto exchanges in India, such as CoinSwitch and UnoCoin.

If the crypto bull market is here, it would be interesting to know how Indian investors can join the party. Which is the best cryptocurrency exchange in India to trade crypto? Read on as we explain what drives the crypto market and how to make the most of the bonanza by channeling your investment through some of the reputed Indian crypto exchanges like CoinSwitch and WazirX.

What is a ‘bull run’ in crypto?

Bull market refers to a period of rising market prices, while bear markets signify a period of falling asset prices.

One swallow, they say, does not make a summer. However, the price of Bitcoin, which makes up more than 50% of the crypto market capitalisation, is often seen as a harbinger of a bull or bear market cycle. Therefore, if BTC is surging, crypto investors consider this an indicator of a booming crypto market.

However, Bitcoin is not rallying in isolation; Ethereum, the second-largest crypto by market capitalisation, is also gaining momentum. The overall crypto market capitalisation is seeing positive growth, and the market sentiment indicator Bitcoin Fear and Greed Index is displaying a reading of 80, signaling extreme greed.

While most indicators point to a bull market, it remains to be seen if this will be a bull sprint, where the prices will slump as fast as they went up. It could also be a bull marathon, where the prices will increase with regular rationalisation, continue to hold steady at levels, and eventually retract a little, giving investors time to profit from the gains.

Let's examine the factors that are fueling this crypto bull run to understand the nature of this rally.

Change in the Bitcoin demand and supply equation

Two recent developments impact the Bitcoin demand and supply equation.
The spot Bitcoin ETF approval in the US
The upcoming Bitcoin Halving event in April
The Spot Bitcoin ETF impact

The ETF approval brought Bitcoin investments into the regulated space. This spurred demand from institutional and retail investors, leading to an increase in demand for Bitcoin.

The increased demand is leading to a rally in Bitcoin prices and is fueling a rally in other altcoins as well.

The upcoming bitcoin halving
In Bitcoin halving, Bitcoin’s mining reward is split in half. BTC miners receive rewards for validating each block in the Bitcoin blockchain. The reward miners receive is fixed, and the reward is halved every 210,000 blocks.

The April 2024 halving will be the fourth halving event, and with this, the mining reward will be halved to 3.125 BTC. This will starve the supply of new Bitcoin and make mining for Bitcoin more competitive and difficult.
This supply shock, along with the ETF frenzy-driven demand, is expected to push Bitcoin prices further.

Historically speaking, Bitcoin has had 3 halving events, and all of those have led to a bull run. This time around, multiple factors support the bullish momentum, and most likely, this is the start of a long bull run.

The depth of the crypto rally
The current positive price momentum shows good market depth. Popular altcoins like Ethereum and Solana and meme-coins like Dogecoin and Shiba Inu have all gained. The overall crypto market cap gained almost $1 trillion, surpassing the $2 trillion mark.

The numbers point to a broader rally that is not limited to just Bitcoin and Ethereum.

The depth of the rally shows investor confidence in crypto. Investor confidence in various crypto assets signals that this might be a prolonged rally that will run for a few months and then taper, giving investors opportunities to book profits.

How to prepare for the Crypto Bull Run in India

The spot Bitcoin ETFs are quite the rage in the US, but they are not available in India. So how do you participate in this bull run?
Prepare for the Bull Run

Set aside a fixed amount that you wish to invest in cryptos

A fixed amount should be set aside for investment to ensure that you are not over-invested. Considering the volatile nature of crypto assets, the amount you set aside for crypto investment should not be a very high percentage of your portfolio.

Set your profit targets, avoid greed
When investing in crypto, or any asset for that matter, you should have a clear exit strategy. This will help you stay disciplined. If you decide on your profit target, exit the investment when it hits the mark, even if the market shows a steady uptrend. You can’t time the market, so you should be aware of your risk-taking appetite and act accordingly.

Diversify your investments
While investing in crypto, don't put all your money in one token. Think about diversifying into three or more tokens with different fundamentals. For example, your crypto portfolio can have some BTC, an AI token with good prospects, a meme-coin, and a DeFi exchange token. A diversified portfolio will help you hedge risks.

Research-based decision making
Base your buying and selling decisions on research. Check the fundamentals and do a technical analysis of the token before you invest in it. Don't follow the herd blindly and put money in tokens that are trending. You might get trapped in a bubble if you follow the trend.

Once these things are in place, you will need a trusted investment partner to buy and sell cryptos in India. Here is a list of some of the leading crypto apps and exchanges in India for you to consider.

The Best Crypto Exchanges in India

• CoinSwitch and CoinSwitch PRO: CoinSwitch is India’s largest crypto trading app with over 2 crore happy customers. The sheer size of CoinSwitch’s customer base is a testament to people's trust in the company. What makes CoinSwitch popular are its security features and excellent customer support. CoinSwitch’s trading platform has multilevel security with advanced encryption as per top-notch global security norms to keep your funds safe. If you are looking for India’s most trusted crypto trading platform, your search ends with CoinSwitch. Download the CoinSwitch app, register, initiate your KYC, and link your preferred mode of payment. That's it—you are all set to make your first crypto trade. The best part about CoinSwitch is that it supports multiple payment modes, making it convenient for users to buy their desired crypto for as little as Rs. 100.
• CoinSwitch PRO: CoinSwitch PRO is a platform within the CoinSwitch app. As the name suggests, PRO is a specialised platform for seasoned crypto traders. It comes with state-of-the-art features, including advanced charts and analytical tools by TradingView, limit orders, access to multiple exchanges, and a unified portfolio to manage all crypto investments across exchanges. Traders can use these features to study the market and devise unique API trading strategies.

CoinSwitch PRO is a rupee-powered, secure crypto trading platform that is available on the website and in the app.

• UnoCoin: UnoCoin was launched in 2013 to help people achieve financial freedom by providing easy and trusted access to the $2 trillion crypto ecosystem. Popular among traders as a specialised platform for Bitcoin trading.
• WazirX: WazirX, a crypto platform founded in 2018, currently offers more than 300 cryptos for investors and traders. The platform is known for providing good prices and robust liquidity. The exchange also has a native crypto called WRX.

Conclusion
Data shows that we are at the start of a crypto bull run. If you are a crypto investor or a newbie to crypto, you can benefit from this bull run if you do your research well. Base your trading decisions on solid research rather than fleeting trends to make the most of this crypto rally.

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