Comparing the Current Crypto Bull Run to Historical Trends

The 2024 bull run in cryptocurrencies is defined by a significant shift in crypto regulation landscape, with BTC ETFs approved and ETH ETFs approval discussions, marking a milestone for the digital asset industry. Bitcoin, the primary cryptocurrency, keeps surpassing previous highs, fueling a large part of the market's excitement. In addition to Bitcoin, various well-known altcoins like ETH, SOL, DOGE have seen significant increases, emphasizing the prevailing optimistic outlook.

This particular bull market stands out not only for its remarkable price increases but also for its significant market depth. The total cryptocurrency market cap has exceeded $2 trillion and reached the level not seen since the previous bull run. Much of this growth is attributed to BTC growth to the new ATH, while many altcoins demonstrate more moderate growth so far and still trade far from their highs reached during the previous bull periods.

Regulatory changes and growing investor trust indicate that this bullish period could be extended, possibly lasting for a number of months. Factors like heightened institutional investment, expanding mainstream acceptance, and advancements in blockchain technology are driving this continuous expansion.

But has every bull market been like this, or will 2024 be special? Let's take a look back.

Crypto Bull Runs History

The year 2011 is traditionally highlighted as the year of the first crypto boom, when Bitcoin rose from 80 cents to 36 dollars. One of the main reasons was the entry of new traders, who began mercilessly pouring money into the total capital of the project. What happened next? After ATH, the rate fell by as much as 90%. High volatility of crypto assets provided investors with opportunities to capitalize from price pumps but also led to significant losses of many industry participants.

Bitcoin was at the price below $50 in early 2013. There were four major collapses during that year. In two cases, the Bitcoin rate fell by 80%. However, investors were able to make more than a hundredfold profit on this. In November 2013, the rate reached $1,000 but dropped to $500 in December.

In January 2017, the price came back to $1,000 and continued to rise. The rate went up abruptly because of the uncertainty of traders. On August 23, 2017, Bitcoin was worth just over $6500. In December 2017, it continued to rise and stopped at $19,666 (adding 60% in five weeks). Just one month later, Bitcoin fell below $10,000. This period also became a period of ICO boom that became the primary way of launching new tokens. Many projects like Ethereum (ETH), Cosmos (ATOM), Filecoin (FIL) showed an astonishing ROI after ICO making its early investors millionaires, but the majority of projects turned out to be scams and never gave back investor’s money.

When was the last crypto bull run? Bitcoin reached the price of $64,000 by April 2021. After that, there was a more than twofold drop. The rate recovered by November and reached $69,000. After updating the all-time high, the rate began to fall. Bitcoin spent the whole year 2022 in a downtrend and fell to $15,500. At the beginning of 2023, growth began, which accelerated in October. The 2021 bull market features the rise of new crypto narratives that attracted thousands of users and millions of dollars funding. NFT, GameFi and metaverse projects became the new meta in the crypto industry.

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Indicators Defining the 2024 Bull Market

What are the key indicators for the 2024 bull run? Let's see.

Corporate and Public Adoption

One of the most notable aspects of this bull market is the increased institutional acceptance and investment in the cryptocurrency space. Institutional interest has been a key factor in stabilizing the cryptocurrency market after previous collapses, providing greater liquidity. Today, many institutions are actively investing in cryptocurrencies, with the asset management industry in particular standing out. Companies such as Square and MicroStrategy have allocated a portion of their cash reserves to Bitcoin, showing confidence in the future of the digital currency. At least 35 major international companies from different sectors accept Bitcoin and other cryptocurrencies as payment. This significantly increases the level of trust and loyalty every year. The combination of retail and institutional interest, as well as the integration of cryptocurrency services by large corporations, signals a transformational period for the cryptocurrency market.

Regulatory Environment

The cryptocurrency industry has become a powerful ecosystem, and it simply cannot continue to be ignored. It is far more interesting for government agencies to lead and restrict than to surrender to the mercy of a winner. But the SEC's pressure is waning, court cases have been going on for years, and the regulator has begun to relent. Nevertheless, clear cryptocurrency regulations provide more certainty for investors and businesses. This has reduced risks and attracted more institutional players to the market.

Technological Innovations

The cryptocurrency industry has witnessed remarkable technological advancements in recent years, which have fueled further adoption and growth. Innovations such as layer-2 scaling solutions, decentralized finance (DeFi) protocols, and non-fungible tokens (NFTs) have greatly broadened the practical applications of cryptocurrencies. These developments have attracted a surge of new users to the ecosystem. The rising popularity of DeFi platforms and NFTs has played a significant role in the current crypto bull market, underscoring the dynamic and ever-evolving nature of the crypto space. These cutting-edge technologies not only improve the functionality and scalability of blockchain networks but also create new opportunities for investment and application, reinforcing the industry's standing in the global financial landscape.

Moreover, there is a trend towards the use of artificial intelligence in blockchain-based projects to automate, improve decision-making, and optimize processes. Applications of AI directly in cryptocurrency-related scenarios can include trade automation, data management, market analysis, improving network security, and helping to develop smarter and more efficient decentralized applications.

Price Dynamics

Bitcoin has reached its all-time high, and analysts are predicting continued growth until at least 2025. Of course, all forecasts are relative, and no one can provide guarantees, but after the bear market of 2022, the current situation is very positive. In addition to Bitcoin, the prices of other altcoins are also rising.

Economic Influences

Inflation directly affects the growth of the cryptocurrency market, as traditional assets become more expensive and investors need to find a way to protect themselves from losing money.

Projections and Risks for the Future

The primary cryptocurrency in the market is Bitcoin (BTC), and according to many analysts, its price is expected to continue rising in 2024, potentially extending into 2025. However, opinions are divided on Bitcoin's post-halving behavior. Some investors predict a sharp jump in Bitcoin's value, while others believe that growth will be more gradual.

Analysts at Standard Chartered have raised their Bitcoin price forecast for the end of 2024 from $100,000 to $150,000. Additionally, these analysts anticipate that the price of Bitcoin could rise to $250,000 in 2025. Similarly, analysts at brokerage Bernstein predict Bitcoin will reach $150,000 by the end of 2025.

However, as the cryptocurrency market grows and proliferates, investors face certain risks. Some experts believe that in 2024, increased regulation will lead to a rise in analytical systems to monitor cryptocurrency activity. Existing players may receive additional funding or government support as the number of crimes in this sector continues to grow.

It is important to remember that all predictions remain speculative, and despite the bull run, investors should always make decisions with caution.

Conclusion

A bull run in crypto is a natural event, part of the cyclical nature of the market. Bull runs are integral to the rise and fall cycles of cryptocurrencies. By 2024, numerous developments in cryptocurrencies have opened new doors for investors, but they also carry certain risks. Investors need to remember to stay level-headed, even when the market appears very attractive.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.