As of November 2023, the global cryptocurrency market capitalization is estimated to be over $2 trillion, a significant increase from the lows reached during the 2022 bear market.
Many analysts believe that the current boom is driven by institutional investors, who have begun to invest heavily in cryptocurrencies and have been major buyers during the 2023 bull run.
The crypto bull run could experience a slight dip due to increasing regulatory scrutiny in the United States and other countries.
Over 80% of the world’s population does not know what Bitcoin is, which has led many experts to describe the current market as a “crypto gold rush” for new investors.
The next major upgrade to the Bitcoin protocol, known as the “London Call Change”, can be executed as early as March 2025 and will have significant effects on the price volatility of the coin.
A recent report suggested that the Bank of America is working on a digital currency for the bank, in which case, the bank will be the world’s first major retail establishment to create an entirely bespoke digital currency.
Several countries have stated their intention to centralize their own currencies and remove the need for the US dollar to back them.
Currently the fastest transaction fee for Bitcoin stands at $250 whereas for Visa the average fee is $5.5 per transaction, however even the lower fees of Bitcoin may put investors off the market due to transaction speed and volatility.
A China-Georgia Belt and Road initiative will be pushing deep in the Black Sea region and this could disrupt the dynamics for trade for coins but is largely a crypto side-effect and on a rather local scale.
Analysts expect that by the end of 2025, the global cryptocurrency market is forecasted to grow to over $400 billion, and that this represents nearly 10% of the total financial market capitalization.
Is the Crypto Bull Run Returning Before 2025?
As I sit here, reflecting on the crypto market’s recent performance, I can’t help but wonder: is the crypto bull run returning before 2025? The question is on everyone’s mind, and for good reason. We’ve seen glimpses of hope, but also crushing disappointment. As someone who’s been invested in crypto for years, I’ve learned to approach this topic with a mix of excitement and skepticism.
A Brief History of Crypto Bull Runs
Before we dive into the possibilities of a new bull run, let’s take a quick trip down memory lane. We’ve had two major crypto bull runs in the past decade:
Year
Bull Run Characteristics
2017
ICO mania, Bitcoin’s astronomical rise to $20,000
2020-2021
DeFi summer, Ethereum’s surge to $4,300
These periods were marked by frenzied investment, astronomical price growth, and a sense of euphoria in the crypto community.
The Current State of the Market
Fast-forward to today, and the landscape looks very different. We’ve been in a prolonged bear market, with prices stagnant or declining across the board. The total crypto market capitalization has been hovering around $1 trillion, down from its peak of $3 trillion in November 2021.
Reasons to Be Optimistic
Despite the gloom, there are several reasons to believe a new bull run might be on the horizon:
Institutional Investment
More and more institutional investors are dipping their toes into crypto. Hedge funds, family offices, and even pension funds are starting to see the potential of digital assets. This influx of capital could be the catalyst for a new bull run.
Adoption and Infrastructure
The crypto infrastructure has improved significantly over the past few years. We’ve seen the development of more user-friendly exchanges, the rise of decentralized finance (DeFi), and the increasing adoption of cryptocurrencies in mainstream commerce.
Regulatory Clarity
Governments and regulatory bodies are finally starting to provide clear guidelines for the crypto industry. This clarity could lead to increased confidence and investment from both institutions and individuals.
Reasons to Be Cautious
However, there are also several reasons to temper our enthusiasm:
Global Economic Uncertainty
The global economy is facing numerous challenges, from inflation to geopolitical tensions. These macroeconomic factors could continue to exert downward pressure on crypto prices.
Technical Indicators
From a technical perspective, many crypto assets are still trading below their 50-day and 200-day moving averages. This signals a lack of momentum and could indicate further consolidation or decline.
Over-Leveraging
The crypto market is notorious for its volatility. If we do see a new bull run, it’s essential to avoid over-leveraging and to prioritize risk management.
My Personal Take
As someone who’s been invested in crypto for years, I’ve learned to approach the market with a mix of optimism and caution. While I believe there are valid reasons to expect a new bull run, I also know that the crypto market can be unpredictable and unforgiving.
Actionable Tips for Crypto Investors
Here are some actionable tips for crypto investors:
Diversification
Spread your investments across a mix of low-cap, mid-cap, and large-cap assets.
Position Sizing
Manage your risk by limiting position sizes and avoiding over-leveraging.
Education
Stay informed about market developments, technical analysis, and macroeconomic trends.
Hedging
Consider hedging strategies to protect your portfolio from potential downturns.
Frequently Asked Questions
Here’s an FAQ content section about whether the crypto bull run is returning before 2025:
Is the Crypto Bull Run Returning Before 2025?
Yes, many experts believe that the crypto market is due for another bull run. The crypto market is notoriously cyclical, with periods of rapid growth followed by periods of decline. After a prolonged bear market, many investors are anticipating a new bull run.
What are the signs that the crypto bull run is returning?
Some signs that the crypto bull run may be returning include:
Increasing institutional investment and mainstream adoption
Improving technical indicators, such as the 200-day moving average
Growing sentiment and buzz around cryptocurrencies
Limited supply and increasing demand
Regulatory clarity and favorable government policies
