Bitcoin and the rest of the crypto market are once again surrounded by bullish feeling and exuberance as the leading crypto by market cap dusts off and picks up after an 85 percent drop over the past two years.
Bitcoin’s price has risen sharply due to FOMO with a substantially confirmed bottom. The resurgence of speculative hope may have caused crypto analysts to reflect on the last crypto bull run that has taken Bitcoin to its all-time high of $20,000, and consider what has changed since that could lead to an even bigger bull run around this time.
Key Factors Fueling The Next Bull Run To Even Higher Heights
When Bitcoin burst into the public eye in 2017, the vast majority of the general public had never heard of Satoshi Nakamoto’s cryptocurrency before. The curiosity of the public being piqued and their front-seat view as Bitcoin almost doubled in a month from $10,000 to $20,000 FOMO purchasing at the peak of the bubble pop.
A bear market erased all the positive feeling around the crypto space, with many calling for the funeral of Bitcoin as it fell in value lower and lower. But Bitcoin has turned around and gone parabolic again in recent weeks, rocketing from $4,200 to current levels above $8,000 in less than six weeks. The surge has once again caused the market to speculate and dream about what the next bull run will bring with it.
Most crypto analysts expect the next bull to eclipse all and for good reason, all the gains witnessed during the bull cycle 2016-2017. Because of the FOMO of the public, one argument for why the next bull run will be “biblical” again.
“Normies” as they are called by one analyst, now know that $20,000 BTC is possible, which could cause them to flock to the crypto asset in fear of missing out on another massive rally.
Another reason is that investors, including institutions, have a wide range of options available to gain exposure to crypto markets. Having launched Bakkt on the way, Fidelity, and so much more, Bitcoin is easier to invest in than the final run. Also, the effect on the Bitcoin supply of Square’s Cash app cannot be underestimated.
While crypto has yet to be present in a major global economic crisis, it is intended to be a hedge similar to gold during downturns. Bitcoin is becoming increasingly attractive as “major financial markets” crash in the wake of escalating trade tensions between the US and China.
During the economic turmoil, making Bitcoin even more valuable is its value as an uncorrelated asset. It’s an ideal choice for portfolio diversification because Bitcoin and other cryptos don’t follow other markets.
Adoption by some of the world’s largest retailers could also help create additional buzz and cryptocurrencies use case, and help bring valuable exposure to consumers.
Tech companies like Samsung have started to feature crypto-specific functionality out of the box on their smartphones, and technology entrepreneurs like Elon Musk and Jack Dorsey support cryptocurrencies, adding a much-needed approval stamp on unfamiliar technology and assets class. With millions of Samsung phones in the public’s hands, crypto is seen prominently on the regular in the general public’s daily life. Another great example of this daily exposure is Coinstar. It’s these combination of reasons and so many more, why it’s clear that “ this time is different,” and crypto is poised to make a monumental comeback in the public eye.