People have started to speculate the end of crypto bull run due to recent dips. But the truth is, it isn’t over yet. Read on to know why.
The crypto market has been on a bull run for a considerable portion of 2021 (no, we’re not ignoring the May crash). Although it has certainly seen some dips, one can be fairly assured that this bull isn’t going to hit a fence soon. After all, this bull run has exceeded all its expectations and grabbed many eyeballs when Bitcoin passed the $50,000 mark for the first time.
One might wonder why the current run is different from the previous one. For starters, it is easier for the investors, both retail and institutional, to gain through this run due to the presence of many online trading platforms like WazirX . Further, this run doesn’t seem to end soon and is raging on bigger expectations.
Here are the top five reasons why it’s not just over for the bull run in the crypto market.
1.Pent-up demand :With employment dropping because of the pandemic, people certainly looked at other sources of income, and crypto came as a blessing in disguise in 2020. But that doesn’t mean this enthusiasm will soon fade away. Given the recent reopening of towns and cities after a major lockdown, businesses have started to open up. Consumer confidence is slated to improve, and so will the demand to buy more goods. This is where crypto comes in, riding on the wave of improved consumer and business confidence and a pent-up demand due to COVID-induced lockdowns. According to latest reports, in India, crypto adoption is largely driven by tier 2 and tier 3 cities , with Bhopal showing the greatest rate of growth among small cities at 100%.
2.Mass adoption :Recently El Salvador became the first country in the world to adopt bitcoin as an official legal tender, where its president decided to give away up to $30 of free bitcoin to the citizens. Similarly, Panama is reportedly planning to follow its steps, and so are many other countries that are looking to create their digital currencies. According to Chainalysis' 2021 Global Crypto Adoption Index, India ranks second in cryptocurrency adoption rate. In fact, in many countries, cryptocurrencies are now being looked at as a safe asset to beat inflation and market volatility. Companies like Square and MicroStrategy are increasing their investments in the crypto sector which many other companies are looking to accept crypto as an acceptable means of payment soon. Corporate confidence is adding more value to cryptocurrencies, contributing to the Bull Run. 3.Bans and crackdowns :A blessing in disguise?: Negative comments from some expert economists like US treasury secretary Janet Yellen, Tesla announcement to stop the acceptance of Bitcoin as a legal tender for its purchases, or China’s recent crackdown on Bitcoin mining proved to be a punch to the crypto market. But in the long run, all this might seem like a blessing in disguise. While there are some negative commentators about crypto, many long-term investors and countries (El Salvador) are aggressively propagating for its greater acceptance. With more and more institutions and companies looking to adopt and accept crypto as a legal tender, one company’s backing-off might fasten the process of acceptance by other brands. Since China originally controlled 46% of global Bitcoin production before its mining ban, it also gave opportunities to other nations to set up their production units contributing to greater, faster, and better production of bitcoins and other altcoins. 4.The ‘golden’ cross :A golden cross refers to a situation when an asset’s short-term moving average price crosses long-term moving average. For Bitcoin, this happened in September, along with another different kind of golden cross. That of its ⦁hash ribbon - which also had a cross between its 30-day moving average and 60-day moving average. Historically, this has indicated a significant gain in trading volumes. Bitcoin’s Hash ribbon is a measurement of the computing power being used in the Bitcoin network at a given period. As seen in the past, whenever this rate goes up, so do the crypto prices over the period. Thus, it is an indicator of the continued bull run.
5.Scarcity driven by Bitcoin halving :Given the limited availability of bitcoins in the market caused by the halving every 4 years (a slash in rewards derived by mining a valid block of Bitcoin by the miners), there’s considerable pressure from the demand side for this asset. As basic economics principles state, higher demand, and lower supply lead to higher prices for assets.
This bull run marks the beginning of greater things to come for the crypto market. With greater adoption by institutions, countries, and individuals alike, crypto would be a part of the mainstream. More and more platforms and portals are facilitating investors into this market through various means and tools. One of them is India’s most trusted cryptocurrency exchange WazirX . With rapid transaction processing and KYC, strong security, availability across platforms, elegant and simple design, WazirX is for everyone!
This article is authored by Pratik Ahuja, Senior Manager, Marketing at WazirX
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FAQs
Bitcoin's rise to a new all-time high (ATH) of $72,000 in March this year signalled the beginning of a crypto bull run after a long crypto winter that saw many crypto companies shut down. However, it seems like the bull run is fading.
What is causing the bull run in crypto? ›
High Demand for Bitcoin from ETFs
U.S. spot ETFs are purchasing nearly double the daily Bitcoin production. This intense demand from institutional investors through ETFs is creating a notable supply-demand imbalance, fueling bullish sentiment in the market.
How long does a bull run last crypto? ›
Crypto bull runs have tended to last 12-18 months in recent market cycles, with massive price gains occurring in short periods of time before peaking. When Will the Crypto Bull Run Start? Crypto markets tend to see major bull runs every few years, with prices dramatically surging over periods of 12-18 months.
Why is the crypto market crashing? ›
One of the primary reasons for the current crash, according to Michaël, is the uncertainty surrounding spot Ethereum ETFs in the U.S. Although approved by the SEC, these ETFs are not yet listed, causing confusion and affecting market sentiment.
Why is the crypto market going up? ›
Crypto derivatives market is bullish
The open interest (OI) of all top-ranking cryptocurrencies has risen in the past 24 hours, especially after the Trump news. Moreover, most of these assets show positive funding rates, suggesting long traders pay a fee to short trades to keep their bullish positions open.
Which coin will reach $1 in 2025? ›
Bitcoin's upcoming rewards halving and the ETF approvals in early 2024 could drive a bullish market sentiment in the long run, indirectly benefiting Ripple. All things considered, Ripple's path to $1 by 2025 is based on solid developments and strategic growth.
What is causing the bull market? ›
Causes and Support
Bull markets generally start when the economy is strengthening or is already strong. They tend to coincide with a strong gross domestic product (GDP), a drop in unemployment, and a rise in corporate profits. Growing investor confidence can keep bull markets moving.
Why is the crypto bull run every four years? ›
This is a technical event that takes place on the Bitcoin network roughly every four years, cutting the supply of the cryptocurrency in half to create a scarcity effect that makes it like “digital gold.” Historically, it sets the stage for a new cycle and bull run – but this one's a little different.
Why does crypto crash 6 reasons? ›
6 reasons why crypto crashes:
Lack of liquidity in cryptocurrency markets. Cryptocurrency regulation. Crypto security breaches causing fear. Crypto influencers causing volatility.
What are the 4 phases of crypto bull run? ›
Takeaways: A crypto market cycle consists of four phases — accumulation, markup, distribution, and markdown.
There's good news when it comes to the average length of market downturns and upswings: Bull markets, on average, last far longer than bear markets. According to data from investment group Bespoke, the average S&P 500 bull market since 1929 has lasted 1,011 days -- or just under three years.
What are the signs of a bull run in crypto? ›
Historically, the beginning of crypto bull markets has often been marked by a surge in Bitcoin's “dominance,” a measure of Bitcoin's market value relative to the total cryptocurrency market. This trend emphasizes Bitcoin's role as a leading indicator for the broader crypto market.
Will crypto ever recover? ›
When crypto is crashing, someone who's been intrigued from the sideline might think this is the time to get in and "buy low." But while prices can recover — and have done so in the past — the recovery could take months or years. Conditions might also get worse before they get better.
Will crypto recover in 2024? ›
Bitcoin continues to go from strength to strength in 2024 after a strong 2023 saw it more than double in value. With ETF approval in early 2024, an upcoming Bitcoin Halving, and increasing utility many traders are wondering what comes next for the world's largest cryptocurrency.
Why are all cryptos falling? ›
The crypto market continues to fall and remains choppy with the BTC declining due to negative ETF flows and poor macro data from prior weeks, a CoinDCX Research Team note said.
Will there be a crypto bull run in 2024? ›
The next rally is expected as part of a pattern that has held up for years now and which sees a massive, year-long bullish market that takes place 6-12 months after the Bitcoin halving. Since the halving already took place months ago, the next rally could start at any time in H2 2024 or even in early 2025.
What year is the next bull run in crypto? ›
The next crypto bull run is anticipated to begin in late 2024.
Should you invest in crypto in 2024? ›
With the impending ETF approval, halving, and potential rate cuts from the US Fed, Bitcoin is poised to reach greater heights in 2024. The go-to platform for smart contracts and dApps, Ethereum fuels the burgeoning field of decentralised finance (DeFi).
Will the Shiba Inu bull run? ›
As per our current price prediction, Shiba Inu can be bullish for the coming years but the jump to $1 seems a stretch. How high Shiba Inu can go? If the impact of the last halving is anything to go by, Shiba (SHIB) could easily rally to over $0.00003965 in 2025.
