For the past decade, there have been sporadic cycles of bullish trends and moments of bear runs in the cryptocurrency market. In most cases, the market has seen steep rises in the prices of assets followed by significant corrections. As we draw nearer to the end of this year, many people speculate about another major bull run in cryptocurrency – a period when prices increase across all crypto assets for relatively long periods. Knowing what constitutes such a scenario and what leads to it will empower traders to take advantage of probable uptick in prices.
This article will discuss some of the factors that may point towards a crypto bull run 2024, and examine some historical contexts of past bull markets while shedding light on ways one could prepare for it. Additionally, it will be shown how CoinLaunch which is a platform that focuses on spotting new cryptographic coin projects is paving the way for a potentially explosive year in terms of keeping investors alerted before others do.
What Is a Crypto Bull Run?
A bull run in cryptocurrency entails a significant surge in the prices of cryptocurrencies which tends to last for a considerable period. This is usually because of factors such as market optimism, advancement in technology, increased adoption, or positive regulatory changes. During such times, traders normally flock into the market hoping to capitalize on fast appreciating asset costs, thereby pushing up prices even more through positive feedback loop mechanisms.
Though these periods offer investors a chance to make huge profits; this also makes them very volatile and ends suddenly with severe corrections in capital markets; hence sound investment strategies are needed to mitigate risks while maximizing gains during these times (Napo 2017 ).
Historical Bull Runs
The cryptocurrency market has seen several notable bull runs, each of which has been triggered by a unique combination of factors. Here are two of the major bull runs in the history of crypto:
The 2017 Bull Run
The 2017 bull run stands out as one of the biggest in the entire history of cryptos. Within that time frame, Bitcoin’s price increased from below USD 100 at the start of January to almost $20,000 by the end of December, which represents over twenty times an increase in value. It was during this period that Initial Coin Offerings (ICOs) became prominent as most blockchain start-ups adopted this method to raise money for their projects through selling their tokens. The value of many other altcoins like Ether and XRP saw tremendous surges too during this time frame.
Retail investors played a significant role in the 2017 bull run and it was marked by an influx of mainstream media attention. The following year however (2018), saw a sharp correction with Bitcoin losing almost 80% of its value alongside many other altcoins falling even more steeply.
The 2020-2021 Bull Run
The most recent bull run occurred between late 2020 and 2021. During this time, Bitcoin achieved new historic highs which were above $60,000. This trend was supported by various forces including the increasing interest from institutions in digital assets, the global economic uncertainties due to COVID-19, and also arrival of non-fungible tokens (NFTs) as well as decentralized finance (DeFi). Most significant companies like Tesla, Square, and MicroStrategy among others made huge Bitcoin purchases signaling their acceptance of these digital currencies as legitimate stores of value.
Ethereum too experienced tremendous surges during this time frame because it was a backbone for the DeFi space together with the forthcoming Ethereum 2. upgrades aimed at making the network more sustainable and scalable.
Why 2024 Could Spark the Next Bull Run
Because of several important factors, 2024 might be a year when the cryptocurrency market experiences significant growth and this in turn might be what triggers the next big bull run. Here is experts’ optimism.
1. Halving of Bitcoins
The Bitcoin halving which is among the most awaited events in the crypto world is slated for 2024 A halving takes place every four years approximately where it halves the amount of new bitcoin generated from each block. For example, halvings have always been succeeded by bull runs since the decrease in supply results in scarcity that leads to higher demand. This time around, there are even anticipations that we may experience another price surge following further reduction in inflation rates and fear of supply shock among investors during halving times.
2. Institutional Adoption
Institutions are increasingly becoming interested in cryptocurrencies as most financial institutions are looking at how they can incorporate digital assets within their scope. In the year 2023, some of the biggest asset management companies including BlackRock filed applications for Bitcoin exchange-traded funds (ETFs); making them more accessible to ordinary people.If these ETFs get regulators’ nod then they could have much money coming into this industry hence pushing up prices and driving a larger bull run.
3. Regulatory Clarity
For a long time, regulatory ambiguity was a major setback for crypto-markets, however, there is now some progress towards addressing this issue by various governments around the world. The United States (US), The European Union (EU), the United Arab Emirates, etc have all seen significant milestones regarding how should they regulate digital assets so far. Clearer guidelines would help to minimize consumer panic consequently boosting the global acceptance of Cryptocurrencies thus initiating the 2024 market-wide bull run.
4. Technological Developments
Blockchain technology is evolving with new developments and upgrades yet to come. These include some of the changes expected in Ethereum like its final move into Proof of Stake through initial phase transition work alongside better scalability measures using layer-2 solutions expected soon among others. Next innovations may be directly facilitated through novel blockchain projects that are centered on privacy, governance, or interoperability and could attract returns at large in the industry.
How to Prepare for the 2024 Bull Run
You need a balanced investment plan to fully benefit from any potential 2024 bull run. Here are some ways in which you can get yourself ready.
1. Portfolio diversification
Most probably, Bitcoin and Ethereum may enjoy this bullish move; however, many other altcoins would also show considerable profits. It is advisable to diversify your portfolio by investing across various digital currencies including promising altcoins and projects coming up in emerging areas such as DeFi NFTs and Web3.
2. Remain Updated
In the cryptocurrency market, news flow is fast; therefore it is important to keep yourself updated on new developments and trends to make informed investment decisions. You must follow reliable news sources, join an online crypto community as well as monitor influencers’ opinions so that you remain informed about market developments and possible opportunities.
3. Use Dollar-Cost Averaging (DCA)
Rather than trying to time the market, consider dollar-cost averaging (DCA). It means buying a fixed amount at regular intervals regardless of what the asset’s price is. DCA lessens short-term volatility effects on prices while also making sure that one does not invest all their money when they feel that it’s at the peak.
4. Harnessing the power of platforms such as CoinLaunch
The use of platforms like CoinLaunch can help individuals stay ahead of the game. This publication provides information about new online money projects that are most likely to take off during another bull run. Coinlaunch highlighted several incoming projects that have good potential for growth in its article “10 Next Big Cryptocurrencies to Explode in 2024: Preparing for the Next Crypto Bull Run”. CoinLaunch enables investors to make choices on where they should invest their funds during the initial stage of the next major move using evidence-based analysis and insights from experts
Conclusion
The year 2024 has made many investors and experts look forward with hope because of a possible cryptocurrency price leap. The reasons behind this include Bitcoin’s halving mechanism, increasing adoption by institutions, clear regulations by government bodies, and consistent technological upgrades among others; all pointing towards a possible market-wide surge soon enough. However, prospering in the cryptocurrency market requires proper preparedness, strategic plans, and constant watchfulness.
If you want to take advantage of the next big wave in the cryptocurrency market then diversify your portfolio, know what is happening in the market, and use tools like CoinLaunch to find out about new opportunities that are coming up. With 2024 fast approaching now might be when we need to prepare ourselves for one of the most significant crypto bull runs ever seen.
