Is the Crypto Bull Market Happening?

It’s 2024, and Bitcoin just went through its fourth halving. Does it matter? Well, it kind of matters that cryptocurrencies are breaching their all-time highs again, and decentralized projects are entering new sectors. It looks like the market is entering a bull phase—but the frenzy hasn’t started yet, and investors don’t seem to rush to put all their money into digital currencies. 

A quick look at a Bitcoin price prediction shows that the crypto asset is on the rise, and as we already know, all the other assets in the sector follow suit. Therefore, would it be so wrong to assume that the market will be charged with fury again and enter a bull phase? All the market indicators suggest that the crypto sector is close to bullish momentum. 

Institutional investors are welcoming cryptocurrencies in their portfolios.

Popular cryptocurrencies like Bitcoin and Ethereum have been on institutional investors’ radar for a while, and their rapid adoption among mainstream financial tools has generated optimism in the sector. Major financial organizations worldwide have made significant crypto investments, which has increased public trust in blockchain-based projects. Big names like Tesla and MicroStrategy have opened the road to crypto investing, and other companies have followed their example, regardless of their industry.

When institutional investors welcome a category of assets in their portfolios and expose them to mass adoption, they provide them with stability and legitimacy, two characteristics digital currencies tend to lack. Institutional adoption strengthens the idea that Bitcoin can be regarded as an inflation hedge and store of value. When organizations inject institutional capital into an asset, it’s usually a sign that the market is close to going through a bull phase. 

The sector is subjected to regulatory changes.

Crypto investors have been concerned about regulation since they first joined the sector because they know local laws could impact their operations concerning digital currencies. The industry has long evolved since Bitcoin was first introduced on the market in 2009, so it was only a natural step for regulatory groups and governments in countries open to innovation to develop regulations for the sector. Seasoned investors recognize the importance of regulatory clarity for cryptocurrencies because it lowers the possibility that the assets will be subjected to regulatory crackdowns and market uncertainty. 

El Salvador is the best example of a country that made a cryptocurrency like Bitcoin legal tender and introduced regulatory developments for blockchain-based currencies. While some regulations might constrain cryptocurrencies, others promote acceptance and friendly policies, so they can only propel a bull run. 

Increasing trading volumes

Crypto adoption is progressing, and the high volume of assets exchanged in the market indicates that it could head to a new bull run. A market health metric, the trading volume, will provide anyone interested in the crypto market with a clear view of the evolution of assets. Over the last couple of months, the daily volumes of digital currencies have significantly varied, pinpointing that a wave of new entrants has joined the sector. 

High-volume price movements show that trades rely on sufficient liquidity and that demands are met. Smooth entries and exits benefit traders, encouraging them to spend more time on the market. 

Positive market sentiment.

Trying to gauge a positive sentiment amongst crypto investors would have been impossible last year when the market was in full bear phase. However, as it started to show signs that it might bounce back, the market sentiment changed, and now investors are more optimistic. If it were to measure the overall optimism and predict the future momentum, we would conclude that people are more willing to adopt cryptocurrencies than in 2023. 

It’s easy to capture the audience’s sentiments because they are transparent on social media platforms, online forums, and subreddits to share their opinion about this asset category. 

Bitcoin is listed among stores of value.

Bitcoin completed the fourth halving on April 20 and has maintained its course towards reducing the number of coins miners receive for confirming blocks, guaranteeing its scarcity in the long run. Since it has started to regain its value and hit new highs in March 2024, few investors deny its potential to be considered a store of value. Crypto experts often name it digital gold because it can be used as a hedge against inflation. Investors living in politically unstable countries often buy Bitcoin and other digital currencies to protect their funds from economic insecurity. Local currencies tend to depreciate in unstable times, but Bitcoin and other cryptocurrencies aren’t subjected to the same factors as traditional coins; hence, they maintain their value. 

Bitcoin is also considered a store of value because it has a fixed supply of 21 million coins. 

The NFT market is gaining popularity.

Cryptocurrencies and non-fungible tokens, digital collectibles that allow people to gain ownership of blockchain-based assets, have attracted investors’ attention lately. The launch of NFTs has redefined the crypto market and allowed it to expand into new sectors. Blockchain technology allows virtual worlds to expand and integrate the metaverse, a new ecosystem that relies on augmented reality. 

The latest multi-million-dollar sales of non-fungible tokens prove the sector is expanding quickly. 

Increased social media engagement.

As mentioned earlier, crypto enthusiasts aren’t afraid to share their opinions regarding their sentiments for the market, and they often rely on social media platforms to reach out to the public. Online involvement can only signal that the public is becoming more interested in this category of assets, and the demand will increase. The latest trends in the sector have generated more interest among people in educating themselves about the subject. 

Social media fosters advocacy, loyalty, and a growing community among enthusiasts who want to take advantage of the several benefits digital currencies offer. 

Final words

If you are a seasoned investor, you most likely know that the crypto sector moves in cycles, and you must pay close attention to on-chain signals to ensure that you identify the signs that a bull run is close so you can adjust your strategies.