Crypto Bull Market in 2024 Is Different, Bitcoin Experts Say
Despite a slow start, 2023 witnessed an unforeseen surge in the cryptocurrency market, defying initial expectations. Bitcoin, Ethereum, Solana, and several altcoins saw a notable rally, taking many market participants by surprise.
The cryptocurrency market, characterized by increased volatility, appears to be gearing up for a major bull run this year.
Market growth and increased capitalization
The global crypto market capitalization has skyrocketed to $1.69 trillion, an impressive 112% increase over the past 12 months.
According coin desk, this increase aligns with substantial increases of 154% and 93% in the prices of Bitcoin and Ether, respectively. Altcoins like Solana and Avalanche (AVAX) have outperformed, witnessing notable growth of 880% and 250%, respectively.
Factors driving the rise of cryptocurrencies
Driving this surge are rising expectations surrounding the approval of a Bitcoin exchange-traded fund (ETF), the successful Shanghai upgrade for the Ethereum network, and the impending Bitcoin halving event scheduled in less than 180 days. .
Prominent Bitcoin stakeholders express their confidence in BTC by increasing their holdings. On-chain data from Glassnode reveals a trend reversal, with long-term holders maintaining a bullish stance on the potential of a Bitcoin bull run, leading them to steadily increase their holdings.
According Business Insider, Bitcoin price trends often represent cyclical patterns, with analysts drawing parallels between the current trajectory and historical patterns. This suggests a potential bullish cycle similar to that of 2013 and 2017.
Anticipating the next lockdown
Historically, Bitcoin bull runs tend to follow four-year cycles, often triggered by events such as the supply reward halving, which reduces the speed at which miners create and obtain new BTC.
The next halving event is anticipated for spring 2024, with bull runs traditionally beginning months before the event and extending until Bitcoin reaches a new all-time high. As the countdown to the halving continues, optimism prevails regarding a strong crypto market in the near future.
Photo: Austin Distel/Unsplash
