As we enter into the last quarter of the year, one major anticipation in the air is the next crypto bull room. The anticipation has led many crypto enthusiasts to continue buying a variety of coins. Many hope coins like CORE, Solana, and Floki will soar. Others, like Notcoin, BabyDodge, and Shiba, are also expected to spike in value with the run.
The world of cryptocurrency is a roller-coaster of extreme volatility, thrilling highs, and corresponding sobering lows. In a stagnant market as we seem to be in at the moment, investors await the next big crypto bull run. This waiting game is not just about patience. It’s about understanding the market and what drives its cycles.
The market’s current situation
The cryptocurrency market has seen several boom and bust phases. After Bitcoin’s 2017 rise and 2018 crash, a big bull run occurred in late 2020 and early 2021. Since then, the market has experienced a correction phase, with many investors wondering when the next surge will come. This correction period has seen regulatory concerns and inflation. Interest rate hikes and a general uncertainty in global markets have added to this.
Earlier this year, the bitcoin halving took place. That event boosted bitcoin’s value and increased demand for cheaper coins. This set the ball rolling for the market. Until now, cryptocurrencies were seen as a hedge against traditional markets. However, they are now also largely impacted as they are also closely linked to the global financial system.
A bull run in cryptocurrency, like in traditional markets, is marked by rising prices. This is due to high investor confidence, positive news, and strong economic fundamentals. The market first dips, then prices soar, allowing coin holders to profit when they convert to fiat currency. Just like in traditional markets, the crypto space is also driven by speculation, tech advances, and community sentiment.
These factors often go unnoticed by the average person. So, it’s crucial to know what drives a bull run. This knowledge will help you time your buy and sell decisions. You need to understand institutional adoption, technological advances, regulatory clarity, and macroeconomic conditions. All these factors set the stage for the next surge.
What’s fuelling the wait?
Investors are eagerly waiting for the next crypto bull run for several reasons:
Technological Advancements: Blockchain technology is constantly evolving. Innovations like Ethereum’s switch to proof-of-stake, advances in DeFi, and rising interest in NFTs all suggest the technology is maturing. As these technologies improve, they could spur a new wave of adoption and investment. Their real-world use and better scalability and security will help. Increased institutional adoption also influences these events.
Increased institutional adoption: An increase in institutional adoption also influences these events. Recently, financial firms like Blackrock began offering ETFs and crypto investments.
Regulatory clarity: One big hurdle for cryptocurrencies has been regulatory uncertainty. In several countries, Nigeria being a classic case, the regulations have long been hostile. As governments define their stance on digital assets, it will boost investor confidence.
Macroeconomic factors: With rising inflation and unstable markets, investors seek alternative assets to protect their wealth. Cryptocurrencies, with their decentralised nature and limited supply (in the case of Bitcoin), are seen by some as a hedge against inflation and economic uncertainty.
If global markets continue to struggle, we could see a shift of capital into digital assets, and this potentially will spark a new bull run.
Will there be a bull run before the year runs out?
This is the question on the minds of many. Bitcoin, as of the time of this writing, is trading at $57,928.01 (BTC/USD), with market capitalisation standing at $1,144.03B. As it stands, global events so far suggest the bull run may not happen this year. However, as market dynamics are driven by economic events, this may push into the new year. It will bring a flurry of global developments in the crypto market and politics. This will likely shift market dynamics and inspire the next run. Since a dip is a prerequisite of a bull run, we should expect a sharp drop in bitcoin’s price just before the bull run.
While you wait…
It’s essential to understand the psychology behind it. The cryptocurrency market has always been driven by emotion as much as by logic. Fear of missing out (FOMO) during bull runs and fear, uncertainty, and doubt (FUD) during bear markets drive investor behavior. This emotional rollercoaster can cause irrational decisions. Investors may buy high, hoping for more gains, or sell low, fearing losses.
For those waiting for the next bull run, it’s crucial to stay disciplined. The market is unpredictable. It’s tempting to act on hype. But a more measured approach often pays off in the long run. It means doing thorough research. You must understand the assets you’re investing in. You need a clear strategy for entering and exiting the market.
Preparing for the next bull run
So, what should you as an investor do while waiting for the next bull run?
Stay Informed: Keep up with the latest news in the crypto world. Know the tech, regulations, and trends that may drive the next surge. While new coins are being hyped, look beyond them. Understand the ideology behind meme coins. Many’shitcoins’ will be released. Knowing which coin to buy will be an invaluable insight you will want to have.
Diversify: Don’t put all your eggs in one basket. Investing in different asset classes and in crypto can lower risk.
Have a Plan: Know your goals and have a clear strategy. A plan can prevent emotional decisions in volatile times. It helps with taking profits at targets or holding long-term.
Be patient: Patience, finally, is key. The next bull run may not come tomorrow or even next month, but if history is any guide, the market is cyclical. The market will most likely run into the new year and even into 2025.
Those who stay the course and remain disciplined often reap the biggest rewards. The next crypto bull run will test patience and discipline. While you wait, stay updated. Study the market. Have a solid strategy. Preparation is key, as is discipline.
Wale Ameen is a trailblasing technology thought leader/entrepreneur. He is the founder of DatastreamSend, foremost messaging communication platform offering business communication solution to businesses in Nigeria and the United Kingdom.
