Bitcoin is the first and biggest cryptocurrency in the world. It has had several bull runs in the past, which have caught the attention of traders, investors, and the media. In the world of Bitcoin, a “bull run” is a long period of price increases that often lead to new all-time highs. During these times, big investors usually become more interested, retail investors usually start to participate more, and market sentiment usually gets better. But what makes these bull runs happen? When do you think the next one will happen?
This article will discuss the main signs that a Bitcoin bull run might be coming, the most recent news that affects the market, and how to prepare for the next rise.
What Is a Bitcoin Bull Run?
There is a long time of rising prices called a “bull run” for Bitcoin. During these weeks or months, the value of Bitcoin usually goes up very quickly. buyers generally feel good during these times, and there is a lot of demand for Bitcoin from both large and small buyers. Often, these things happen during bull runs:
- Increased Trading Volumes: More people are buying Bitcoin, causing prices to rise.
- Positive News Cycles: Favorable news, such as large companies’ adoption of Bitcoin or regulatory changes that benefit the crypto industry, can fuel the run.
- Technological Advancements: Key upgrades to the Bitcoin network or developments in the broader crypto space, such as new products and services, can drive growth.
Historical Bitcoin Bull Runs
It’s helpful to look at past rounds to understand what might happen in the next bull run. Since its start in 2009, Bitcoin has had a number of big bull runs. The most important ones are:
- 2013 Bull Run: This was Bitcoin’s first significant surge, where the price went from around $13 in January to a peak of over $1,100 by November. This bull run was driven by increased awareness and interest in Bitcoin as a new form of money, as well as early speculation.
- 2017 Bull Run: The next major surge took place in 2017 when Bitcoin’s price rose from around $1,000 at the start of the year to nearly $20,000 by December. This bull run was largely driven by the growing popularity of Initial Coin Offerings (ICOs), increased media attention, and an influx of retail investors.
- 2020-2021 Bull Run: Perhaps the most memorable bull run for many current investors, Bitcoin soared from around $10,000 in September 2020 to an all-time high of nearly $69,000 by November 2021. This surge was largely fueled by institutional investment, such as MicroStrategy and Tesla purchasing large amounts of Bitcoin, alongside the growing acceptance of Bitcoin as a store of value.
Key Drivers of a Bitcoin Bull Run
Investors and analysts are watching for a 2024 Bitcoin bull run. A number of elements are lining up for one of Bitcoin’s biggest price increases since its creation. Institutional interest, macroeconomic conditions, and Bitcoin’s underlying mechanics, like the halving event, could boost Bitcoin in 2024. Let’s examine the key reasons that could cause a Bitcoin bull run next year. One of the biggest price factors was the Bitcoin halving event. The April 2024 halving will cut miners’ block reward for validating transactions from 6.25 to 3.125 Bitcoins.
This event occurs every four years and has traditionally precipitated bull runs. Halving the Bitcoin supply cuts the rate of issuance in half. Bitcoin’s fixed supply cap of 21 million coins drives prices higher when supply decreases and demand rises. In 2012, 2016, and 2020, price halvings were followed by huge price increases within 12-18 months. The 2024 halving may spark the next bull run, so investors are watching.
Global Regulatory Clarity
Regulatory clarity has long been a significant factor influencing Bitcoin’s price. Uncertainty about government policies can lead to volatility, while positive regulatory news tends to boost investor confidence and encourage adoption. In 2024, we may see more clear and favourable regulations in major markets like the United States, Europe, and Asia, which could act as a tailwind for Bitcoin.
- U.S. Regulatory Developments: The U.S. Aiming to establish regulations that safeguard investors while encouraging innovation, the Securities and Exchange Commission (SEC) has taken a more hands-on approach to the cryptocurrency industry. Progress toward the approval of Bitcoin ETFs and clearer tax policies could attract more institutional investors into the market.
- European Union’s Markets in Crypto-Assets (MiCA) Regulation: The MiCA rule, which will take effect in 2024, is Europe’s proactive move toward cryptocurrency regulation. Thanks to this framework, firms and investors in cryptocurrencies now have precise standards to follow, which increases legal certainty. In a highly regulated setting, the likelihood of investment and adoption increases.
- Asia’s Growing Adoption: Countries like Japan and Singapore have created favourable regulatory environments for Bitcoin and cryptocurrencies. As these nations continue to adopt pro-crypto policies, they could drive regional growth in demand for Bitcoin, contributing to a global bull run.
Latest News and Signs of a Bitcoin Bull Run
Recent developments in the crypto space suggest that another Bitcoin bull run could be around the corner. Some of the latest news influencing the market includes:
- Bitcoin ETF Progress: U.S. regulators have made great strides in approving a spot Bitcoin ETF, which would attract a flood of institutional investors. Many see BlackRock’s filing for approval of a Bitcoin ETF as a watershed moment for the widespread adoption of Bitcoin.
- Rising Institutional Interest: In addition to ETFs, institutional investors are increasingly exploring Bitcoin as part of their portfolios. Fidelity, Goldman Sachs, and other major players are developing crypto products, while pension funds and endowments are starting to consider Bitcoin as an alternative investment.
- Global Regulatory Developments: Countries like the United States, Japan, and the European Union are taking steps toward clearer regulations for cryptocurrencies. This regulatory clarity could drive more institutional investment, paving the way for a sustained Bitcoin bull run.
- Technological Advancements: The Bitcoin network continues to improve, with developments such as Taproot and advancements in the Lightning Network enhancing Bitcoin’s scalability, security, and privacy. These technological upgrades could boost Bitcoin’s long-term value proposition.
How to Prepare for the Next Bitcoin Bull Run
If you believe a Bitcoin bull run is imminent, there are several steps you can take to prepare:
- Stay Informed: Follow the latest crypto intelligence news, regulatory developments, and technological advancements. Keeping yourself updated will help you make informed investment decisions.
- Diversify Your Portfolio: While Bitcoin may be a major part of your investment strategy, consider diversifying into other cryptocurrencies, such as Ethereum or altcoins, which often perform well during bull markets.
- Plan Your Exit Strategy: Bull runs can be followed by sharp corrections, so it’s essential to have an exit strategy in place. Decide ahead of time when you will take profits and how much risk you are willing to tolerate.
- Use Dollar-Cost Averaging (DCA): DCA is a strategy that involves investing a fixed amount in Bitcoin at regular intervals, regardless of price. This strategy reduces the impact of market volatility and ensures that you consistently buy Bitcoin during both high and low periods.
Also Read: Bitcoin God Candle And What It Is and Why It Matters?
In summary
Institutional interest, positive regulatory developments, and growing Bitcoin acceptance by companies and investors might trigger the next Bitcoin bull run soon. In order to be ready to take advantage of the next boom, it is essential to stay educated by reading up on the most recent Bitcoin bull run news and market intelligence. If you want to take advantage of Bitcoin’s growth potential, whether you’re an experienced investor or just starting out, you must prepare for the next bull run.
