We believe that we are on the precipice of what could be… what has the potential to be… a historic and monumental crypto bull run. We’re not predicting that there will be a crypto bull run, nor are we predicting that if one occurs, that it will be historic and monumental. Rather, we are exploring some reasons why that potential exists. Please note that investing is always inherently high risk, particularly when it comes to cryptocurrency. As a general rule, investors should never invest more than they can afford to lose, and should always be sure to conduct their own due diligence research prior to making any investment decisions.
- The Great Bitcoin Halving
At the heart of Bitcoin’s intrigue is its unique and deflationary supply mechanism. Our research shows that approximately every four years, an event known as the “halving” occurs, reducing the rate at which new bitcoins are created by 50%. This scarcity-inducing phenomenon has historically been a catalyst for bullish market trends. As we approach the next halving, which may very likely take place in early to mid 2024, the crypto community is abuzz with anticipation. Previous bull runs coinciding with halving events have demonstrated that scarcity acts as a powerful force, driving up demand and, consequently, prices — though past events do not indicate future trends. With the price of Bitcoin already so high, and with the computational power necessary to mine Bitcoin already so large, this halving could be unlike any prior halving, and this is one of the reasons that has analysts on their toes for what could happen over the next crypto cycle.
- Blackrock and a Bitcoin ETF
The prospect of Bitcoin Exchange-Traded Funds, or Bitcoin ETF gaining regulatory approval marks a major departure from every previous crypto bull run. Research shows that crypto is now more mainstream than ever before. Adoption and education around blockchain and Bitcoin are at all time highs, and while there is still a lot of room to grow, it’s never been this high.
As the crypto market continues to mature, regulatory attitudes are evolving, paving the way for institutional investors to join the fray. The anticipated potential approval of a Bitcoin ETF is poised to inject substantial liquidity into the market, offering institutional players a regulated and secure entry point into the crypto space. This influx of institutional capital has the potential to drive prices to new heights, amplifying the impact of the potential upcoming crypto bull run.
- Crypto Goes Mainstream
Like previously mentioned, unlike previous bull runs that operated on the fringes of mainstream awareness, the upcoming surge is set to unfold against a backdrop of unprecedented crypto integration into everyday life. Cryptocurrencies are no longer confined to niche communities but have infiltrated mainstream consciousness. While there is still a long way to go before crypto is seen as a fully mainstream store of value, we’re at heights never seen before. From major corporations adopting Bitcoin — think: Microstrategy — to the increasing prevalence of crypto-related discussions in traditional media, the stage is set for even more widespread acceptance. Plus, if there in fact is a new crypto bull run, it’s possible that an intense air of FOMO (fear of missing out) will arise and people could flock to Bitcoin and other cryptocurrencies hoping to generate favorable returns. As such, past performance is not necessarily indicative of future results.
The convergence of technological advancements and growing public interest signifies a tipping point, marking the advent of crypto as a mainstream financial asset. Understanding the implications of this shift is crucial for grasping the transformative potential of the imminent bull run.
So, the potential for a crypto bull run that could happen during the next crypto cycle has the potential to be a game-changer, driven by the forces of scarcity, institutional adoption, and mainstream integration. As the crypto narrative continues to unfold, investors, enthusiasts, and analysts alike must remain vigilant, recognizing that the upcoming surge is not merely a repetition of history but a unique and transformative chapter in the evolution of the cryptocurrency market.