What is Bull Run in crypto?

“Bull Run: what is it?”, a newcomer to the market will ask. We hasten to answer. Bull Run is a long period of rising prices of assets. If quotations rise steadily and constantly, demand does not decrease, investors buy cryptocurrencies and show optimism – there is a bull run on the bull market.

Characteristic features of this market condition are as follows:

As a result, the market is in a situation where demand for the most popular crypto assets exceeds supply, and investors are optimistic about their investments. Bull Run occurs due to a positive feedback loop. High prices have a favorable effect on investors’ confidence and encourage them to invest, resulting in even more growth.  

In addition to the fundamental reason related to the cyclical nature of market ups and downs, there are other factors that influence the formation of a bull market. For example, the active spread and adoption of digital assets, the simplification of conditions for their use, the creation of the appropriate infrastructure for this, the emergence of new directions in the industry, and the integration of crypto into business. All of these could trigger a Bull Run. The more people understand how to use cryptocurrency, the more valuable it becomes, and the more trust in it arises.

An important role in the development and emergence of a bull market is played by “whales”, i.e. big investors. They own a significant amount of certain assets, which partially allows them to control the price. According to Bloomberg analysts, crypto whales triggered the surge in bitcoin quotes in 2017. 

In April, bitcoin rose above $1, starting a mini bull run for the first time. At the end of the next three months, the price spiked by 3000%, fixing at $29-32 in June.

The cryptocurrency surged from $13 to $30 in the first quarter. The acceleration occurred in March, and already in April, the price reached $100. In November, BTC was worth $1,000.

After a long period of price fluctuations between $100 and $900, the asset surged ahead in January, jumping above $1,000 per BTC. Euphoria in the market doubled the price to $2,000 in May, and in December, the cryptocurrency was already worth $19,000.

Coronavirus pandemic. The economy came to a halt, but bitcoin’s value accelerated to an all-time high of $29,374.

BTC broke all records and rose to $64,000 and then to $68,000.

Given that periods of rising and fall in value are cyclical, there is no doubt that the next Bull Run will happen. The only thing left to do is to predict when it will happen. Recall that some analysts do not give up their expectations of a rise in the value of BTC to $100,000 in the long term.

The last Bull Run in the cryptocurrency market was observed in 2021. With slight declines, the price of many cryptocurrencies remained high without showing strong reversals or sideways trends. However, the first quarter of 2022 was characterized by a bearish trend: a price collapse, pessimistic sentiment, rising inflation, and bankruptcies of major cryptocurrency companies.

Yet some believe the crypto bull run 2022 is real, amid the anticipated The Merge Ethereum. Crypto enthusiasts believe it could raise investors’ confidence and lead to a bullish movement in the Ethereum NFT sphere.

According to CNBC, the value of BTC could still show steady growth this year. “There’s a chance that an unexpected rise could happen, that you could see a rally at the end of the year,” reports Mona Mahajan, senior investment strategist at Edward Jones Bank. She named high consumer spending, rising U.S. corporate earnings, and a positive economic growth outlook as the primary growth drivers for the major cryptocurrency in 2022.

So, when is the next crypto Bull Run? The words of Coinbase CEO Brian Armstrong come to mind, “Crypto winter could last for 12-18 months.” Well, there is always spring after winter. We just have to be patient.