VWB Blog If you’ve been following the cryptocurrency market for any time at all, you’ve likely had a tough time telling what’s real and what’s not. In 2017, Bitcoin rose more than 1,500 percent before crashing back down in 2018.
Now, some experts are saying that we’re in another bull market cycle—but others aren’t so sure it’s ready to roar again just yet. To help you sort through all of this information, we’ve put together an overview of why a crypto bull market may be back on its feet and how this could affect your investments going forward.
What is a Crypto Bull Market
A crypto bull market is a period of sustained growth in the price of cryptocurrencies. It’s not an event, but rather a trend that can last anywhere from a few months to several years, depending on how long it takes for people’s confidence in cryptocurrency as an investment option to return.
The term “bull market” comes from Wall Street, where it refers to an upward trend in stock prices–the opposite of a bear market (downward trend). But unlike stocks or bonds or other traditional investments, there isn’t just one way to measure the value of cryptocurrencies.
Instead there are dozens of different currencies with different uses and prices determined by supply and demand at any given moment. So while we think about stock markets as having defined tops and bottoms. Cryptocurrency markets are much more nebulous when it comes time for us humans trying hard not to get lost amid all this new technology stuff.
Is the Crypto Bull Market Back?
The crypto bull market is back. The cryptocurrency market has seen a major recovery since the start of 2019, with its total value growing by over 200% in the last 6 months. This is the fastest recovery in the history of the crypto market: after Bitcoin’s price crashed from $20,000 to below $3,500 in mid-2018, it took more than two years for it to recover to its previous high point.
The return of a bull market can present numerous opportunities for investors, especially in the context of trading pairs. Investing in trading pairs such as Shiba Inu USDT during a bull market can be profitable, but it’s essential to remain patient and not expect immediate returns. Keep a long-term perspective and be prepared to ride out any short-term fluctuations in the market.
When was the last Bullish High
The last bull run was in late 2017, when the crypto market reached its all-time high. The market crashed in early 2018, but it has been recovering ever since. The current market is still volatile and risky; however, many experts believe that this is an opportunity for new investors to enter before crypto prices rise again, including the Ethereum price USDT as well as other assets.
Signs Of A Bull Market
A bull market is characterized by a sustained period of rising stock prices and increased investor confidence. Here are some common signs of a bull market:
Rising stock prices: One of the most obvious signs of a bull market is a consistent upward trend in stock prices. This means that the prices of stocks are increasing over time, and investors are making a profit.
Increased trading volume: A bull market typically experiences higher trading volumes, as more investors are buying stocks in anticipation of further price increases.
Positive economic indicators: Strong economic indicators, such as low unemployment rates, high GDP growth, and increased consumer spending, often accompany a bull market. These factors can contribute to increased corporate earnings, which in turn can drive stock prices higher.
Strong corporate earnings: Companies generally report higher earnings during a bull market, as increased consumer spending and overall economic growth lead to higher revenues and profits.
Market optimism: Investor sentiment tends to be positive during a bull market, with many investors believing that the market will continue to rise. This optimism can become a self-fulfilling prophecy, as more investors buy stocks, driving prices even higher.
Low interest rates: Low interest rates can be a catalyst for a bull market, as they make borrowing money cheaper for both consumers and businesses. This can lead to increased spending and investment, which can boost stock prices.
IPO activity: A bull market often sees a surge in initial public offerings (IPOs), as companies look to capitalize on favorable market conditions and high investor demand.
Sector rotation: During a bull market, investors may rotate their investments among different sectors, seeking out industries with strong growth potential. This can lead to increased demand for stocks in those sectors, driving prices higher.
Technical indicators: Technical analysts may look for specific chart patterns and trends that signal a bull market, such as moving averages, relative strength index (RSI), and other indicators.
Media coverage: Positive media coverage can contribute to a bull market, as it can increase investor confidence and encourage more people to invest in stocks.
Advantages of a Bull Market
The crypto market has been in a bull market since early 2019, which means that we’re seeing more growth than we did during the bear market. That’s good news for everyone involved in crypto–including you! Here are some reasons why:
- A Bull Market Attracts New Investors
When the market is on an upswing, it attracts new investors who want to get their hands on some digital coins. These newbies bring fresh ideas and money into the space, which can lead to innovation and growth. These things help push up prices even further while also increasing public interest in cryptocurrencies as an investment vehicle (which can also lead people towards buying coins).
- A Bull Market Encourages Innovation
With so many new players entering into this particular field of finance, there will be plenty of competition between them over time–and this competition often leads toward innovation within certain niches within crypto land (e.,g., mining rigs). As such companies try harder than ever before at competing against each other through building better products/services or lowering costs associated with those same items/services; we end up seeing lots of cool stuff coming out every year thanks largely due our friend Mr Bull himself.
3 key factors behind the crypto bull market’s swift return
There are three key factors that have led to this swift return of the crypto bull market:
The Silicon Valley banking crisis shines a light on the fragile US Banking system
The tech industry is growing faster than the banking industry. As a result, banks are less willing to lend money to startups. This has led to an increasing number of companies turning to ICOs (Initial Coin Offerings) as an alternative way of raising funds for their projects.
ICOs offer two main benefits: they provide access to capital without having to go through traditional channels and they allow investors who wouldn’t be able to invest in startups because they aren’t accredited investors (wealthy people who meet certain income or net worth requirements).
Interest rate increases could be a thing of the past
Interest rates are one of the key drivers of an economy. They’re what banks charge each other for loans, and they also determine how much consumers pay in interest on their credit cards.
The Federal Reserve raises interest rates when it wants to slow down growth or prevent inflation from getting out of control. Low-interest rates have been a boon for investors over the past decade, but they’ve also made it easier for people to borrow money–and that can lead to risky investments like cryptocurrencies (or even stocks).
The long-term crypto market may be due for a positive run
The crypto market is a global phenomenon, and its growth is only just beginning. It’s important to remember that this new financial frontier is still in its infancy, so there will be bumps along the way as it matures. While some people may see cryptocurrencies as a fad or even a scam, those who understand their value know that crypto is here to stay and grow over time.
Conclusion
The crypto bull market has returned, and it’s here to stay. The long-term trend is bullish, and we are now entering into a new phase of growth where cryptocurrencies will be adopted by mainstream users as an alternative form of payment. This means that more people will adopt digital currencies like Bitcoin (BTC) or Ethereum (ETH) as they become more accessible through easier access points such as ATMs or debit cards linked directly with exchanges such as KuCoin, Coinbase or Gemini Exchange.