There is currently much talk about whether or not the cryptocurrency market could return to its all-time high. Nonetheless, some factors actually suggest that the new crypto bull run could be the biggest one yet.
Crypto prices have increased substantially during the last month
The past month has seen Bitcoin perform a dramatic climb from trading at below $5,100 to currently trading above $8,000. However, only looking at the performance of Bitcoin is too simplistic to measure the state of the entire cryptocurrency market.
Nevertheless, the rest of the cryptocurrency market has followed in the wake of Bitcoin’s price increases. In fact, the total cryptocurrency market capitalization has increased from $172 billion to $254 billion during the past month.
This represents a market-wide increase of roughly 48% just during the last month. As such, several market observers have remarked that the crypto winter seems to finally be over. This means that people are increasingly beginning to look forward to the next crypto bull run.
When thinking about a cryptocurrency bull run, most would probably think about the intense cryptocurrency rally during late 2017. This particular green wave brought the price of Bitcoin to its all-time high of $20,000. Some experts are, therefore, predicting an eventual return to those levels.
The next crypto bull run could be the most massive one yet
However, the next crypto bull run could, in fact, potentially drive the price of Bitcoin even higher than $20,000. This is mainly because a lot has changed since late 2017. First and foremost, the public awareness of cryptocurrencies is substantially larger this time around.
Awareness is the first step towards acceptance and, ultimately, adoption. What’s more, FOMO – Fear Of Missing Out – could play a large part in fueling the next crypto bull run.
The market has already validated a $20,000 price point for Bitcoin at one time. This will likely entice casual investors to take part in the next Bitcoin rally, in the hopes of surpassing $20,000.
Furthermore, the cryptocurrency market’s long bear market trend has given cryptocurrency and blockchain firms the time to improve their fundamentals. This means that there is significantly more cryptocurrency infrastructure in place now than one and a half years ago.
The 2019 crypto market is more ready for bull run than it was in 2017
The co-founder of the crypto asset portfolio firm Interchange HQ, Dan Hedl, recently pointed this out on Twitter.
”In the last Bitcoin bull run we didn’t have Cash App, Fidelity, Etrade, TD Ameritrade, Bakkt, ErisX [or] Robinhood. Image what this bull run is going to look like!”
In addition to this, the next Bitcoin bull run could also benefit from investors looking to balance their stock portfolios. The stock market has been especially turbulent during the last week – due largely to the US-China trade war.
The cryptocurrency market, on the other hand, has continued to rise. Furthermore, the looming risk of a global economic crisis could further boost the price of cryptocurrencies.
Cryptocurrencies could be a safe haven during a stock market turndown
Cryptocurrencies compare to gold in being essentially ”immune” to the adverse effects of market turndowns. What’s more, gold is currently rising, and CNBC reports gold futures just settled at their highest point since April.
Moreover, the cryptocurrency industry now has substantially more educational content out there than in 2017. The Samsung Galaxy S10, one of the biggest mainstream phones of the year, has been equipped with cryptocurrency functionality.
Additionally, HTC just revealed a $300 smartphone with full Bitcoin node compatibility. These circumstances are conditions that cryptocurrency investors back in 2017 – when Bitcoin first hit $20,000 – could only dream about.
All of these factors are just some indications as to why the next crypto bull run could very well be the most massive one yet. As always, the markets are fickle and unpredictable so no one can know for sure – but it seems quite likely that the next cryptocurrency bull run could dwarf the last one.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.