In the world of finance, cryptocurrencies are all the rage. While Bitcoin is the most well-known, other altcoins are starting to garner interest. Bitcoin reached an all-time high of about $69,000 during the last bull run in 2021. Since then, the market has had ups and downs, leaving investors unsure of when the next bull run will take place.
To understand when the next bull run will start, this essay looks at potential triggers. We will list the best cryptocurrencies under $1 that have the most potential along with advice on how to profit from such an event.
So, let’s get started right away!
- Important lessons learned
- Increased adoption, demand, innovation, and speculation in the cryptocurrency field are the main drivers of bull markets
- DeFi, NFTs, and institutional adoption were the main causes of the 2021 bull market
- The anticipated April 2024 Bitcoin halving has historically sparked price surges that have the potential to send Bitcoin above $100,000
- Choose your altcoins carefully. Start with Bitcoin and Ethereum to diversify, then add potential altcoins like $PIKA that have real-world applications
- Among competing altcoins, $PIKA stands out as one that is anticipated to soar because of its low entry barriers and 30x smaller market capitalization than competing GameFi ventures
What is a cryptocurrency bull run, and what effects might it have?
A time of persistent and swift increase in the value and market capitalization of cryptocurrencies, such as Ethereum, Bitcoin, and others, is known as a “crypto bull run.” Increased demand, adoption, innovation, and speculation in the cryptocurrency industry frequently fuel a bull run in the market. This lures new investors and enthusiasts. Along with substantial financial potential, a cryptocurrency bull run can also provide difficulties and dangers.
Crypto bull runs bring the crypto industry greater attention from developers, investors, users, and the media. This spurs further innovation, adoption, and regulation. They also bring wealth, opportunity, hazards, volatility, and rivalry for the old financial system. Additionally, they pose challenges for the cryptocurrency community. The history and future of cryptocurrencies are shaped by the fascinating, erratic, and significant occurrences known as cryptocurrency bull runs.
Let’s examine the historical events surrounding the current cryptocurrency bull runs before making any predictions about the future.
An Overview of the Cryptocurrency Bull Market’s History
Three significant increases in the price of cryptocurrencies have recently occurred. Below, let’s talk about their effects:
2013’s Crypto Bull Run
2017’s Crypto Bull Run
Blockchain Boom of 2020–2021
When the price of Bitcoin surpassed $1,000 for the first time in 2013, there was a significant market upswing. This was spurred by media coverage and the introduction of the first Bitcoin ATM. Additionally, the rising acceptance of Bitcoin among IT aficionados played a significant role.
This bull market, however, was short-lived as Bitcoin fell following the Mt. Gox attack, which caused an 850,000 BTC loss. Other cryptocurrencies including Dogecoin (DOGE), Ripple (XRP), and Litecoin (LTC) have emerged because of the 2013 bull run.
The second significant Bitcoin boom happened in 2017, when the coin’s price hit a record high of almost $20,000. This was prompted by the emergence of Bitcoin futures contracts. Additionally, the growing acceptance of cryptocurrency by celebrities, merchants, and institutional investors played a significant role.
The initial coin offering (ICO) mania rose to prominence during the 2017 bull run. It saw hundreds of new projects and tokens launched on the Ethereum network. However, this bull market came to an abrupt halt in 2018. Market manipulation, security lapses, and regulatory uncertainty caused the price of Bitcoin to plummet by 85%.
Beginning in late 2020, there was a third and most current Bitcoin bull run. In November 2021, the price of Bitcoin broke all prior milestones and reached above $67,000.
This was fueled by the growing acceptance of Bitcoin by mainstream organizations, like PayPal, MicroStrategy, Tesla, and Square. Additionally, there was a growing interest in non-fungible tokens (NFTs) and decentralized finance (DeFi). Stablecoins and layer-2 solutions were among the new technologies that emerged during the 2020–2021 bull run.
What Might Start the Next Bitcoin Boom?
The four primary factors listed below have the potential to spark a bullish trend in digital assets this year.
The Event of the Bitcoin Halving
The Upgrade to Ethereum Dencun
Upgrades to Web3, Interoperability, and DeFi
Global Institutional Involvement and Regulatory Events
- The US’s approval and introduction of spot Bitcoin exchange-traded funds (ETFs) may offer investors a more practical and easily accessible means of gaining exposure to the cryptocurrency, hence boosting BTC’s liquidity and demand.
- The acceptance and execution of policies and legal frameworks that are favorable to cryptocurrencies in numerous nations and areas. For example, the Bitcoin Law in El Salvador established Bitcoin as legal money. Similarly, the Markets in Crypto-Assets (MiCA) Regulation of the European Union seeks to establish a comprehensive and harmonized regulatory framework for the cryptocurrency industry.
- Bitcoin and other cryptocurrencies are now included in the balance sheets, services, or products of businesses like PayPal, MicroStrategy, Tesla, Square, and JPMorgan due to the involvement and investment of significant financial and corporate organizations.
Every four years, Bitcoin halving takes place, making it one of the most anticipated events in the cryptocurrency world. It lowers the block reward for miners by fifty percent.
The block reward will drop from 6.25 BTC to 3.125 BTC in April 2024, marking the next Bitcoin halving. As a result, Bitcoin’s annual inflation rate will drop from approximately 1.74% to approximately 1.1%, making it one of the world’s rarest assets.
Due to the supply shock, it causes, which raises both the price and demand for Bitcoin, the halving of the cryptocurrency has historically been the impetus for a crypto bull run. The stock-to-flow model compares the supply of Bitcoin to its fresh production to determine how scarce it is. It predicts that the halving event may drive up the price of Bitcoin to above $100,000 by 2024. Given that Bitcoin is the most well- known and powerful cryptocurrency, halving events also frequently have a favorable knock-on effect for the other cryptocurrencies.
The halving of Bitcoin, however, does not ensure a cryptocurrency bull run. There are other variables that can impact the economics of supply and demand for cryptocurrency. These include mining difficulty, network hash rates, transaction fees, market sentiment, and outside events.
The final stage of the Ethereum 2.0 plan, the Ethereum Dencun upgrade, is another significant event that may set off the next cryptocurrency boom.
The goal of Ethereum 2.0 is to enhance the scalability, security, and effectiveness of the most popular platform for DeFi, smart contracts, and decentralized apps.
Furthermore, by essentially boosting the Ethereum network’s scalability and throughput, it allows handling hundreds of transactions per second. It also supports more users and apps. The Dencun update may influence the cryptocurrency market.
Three essential ideas—Web3, interoperability, and DeFi—have the potential to spark the next cryptocurrency boom. They stimulate innovation and uptake in the market. These ideas are connected because they support and strengthen one another. They create a positive feedback loop that fosters the expansion and advancement of the cryptocurrency industry.
With Web3, users will have more control over their data, identity, and assets. They may employ secure, resilient, and interoperable apps in an open, transparent, and democratic environment. New industries and paradigms, such the metaverse, NFT games or GameFi, fan tokens, and NFTs, are also made possible by Web3. These innovations provide users with fresh experiences and opportunities. They give developers and producers new ways to make money and add value to their work.
Because interoperability enables consumers to access a wider range of services and apps across several networks and lets developers to create more complicated and inventive applications that take advantage of each network’s unique features, it magnifies the network effects of the cryptocurrency ecosystem. By reducing the obstacles to enter and departure for new initiatives and players and promoting the creation of novel solutions and paradigms, interoperability also promotes innovation and competitiveness.
The acts and decisions made by governments and regulators that impact the laws, regulations, policies, and enforcement of the crypto industry are referred to as regulatory events. The participation and engagement of well-known and respectable organizations and institutions, such as banks, corporations, funds, and the media, that function in the conventional financial and economic sectors are referred to as institutional involvement.
In the end, by lowering the risk and uncertainty associated with cryptocurrencies, institutions and laws may increase market confidence and legitimacy in the industry. As the rights and responsibilities of market participants are defined and established, along with industry best practices, more clarification and guidance may also be provided.
Furthermore, institutional participation and legislative developments may result in a greater appreciation of the potential of cryptocurrencies, which might lead to increased integration and acceptance.
The following are some instances of how institutional participation and regulation may set off the next wave of cryptocurrency bull run:
Conclusion
All things considered, given past trends and recent advancements in the sector, the next cryptocurrency boom may already be in sight.
2024 could be a great year to invest in cryptocurrencies, especially low-cost options like PIKA, DOGE, and SHIB, since the possible gains could greatly exceed the dangers.
Before making any decisions, investors should conduct research and be mindful of the volatility and uncertainty associated with cryptocurrencies. In addition to being a financial asset, cryptocurrency is a social and technological phenomenon that has the potential to change the world in the years to come. Consequently, to stay ahead of the curve and improve future forecasting, it is imperative that individuals remain knowledgeable and involved in the community.
Disclaimer
FAQ
Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.
Cryptocurrency wallets are digital tools for storing and managing your crypto assets.
Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.
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