4 Factors That Could Trigger A Crypto Bull Run

Key Insights

• With the upsetting manner the crypto market went in 2022, investors are eager for another bull run.
• A bull run is an extended period where crypto rises soar, sustained by high demand and market confidence.
• There are rumors that another bull run might be on the horizon.

When the new decade (2020) swept in, many were unsure what to feel about crypto. The previous year, 2019, didn't exactly have an encouraging end, with BTC dropping from its June price of $10K to about $6.6K by mid-December.

With COVID the next year, the market shut down before rebounding impressively, with BTC hitting the $29K mark. In 2021, BTC reached its all-time high of $69K, then nose-dived below the $20K mark the next year.

Since the disappointment of 2022, the DeFi space has been searching for the next sparks to ignite a bull run. If they exist, what could they be?

Factors that could influence the next Crypto Bull run

Here are four factors that could influence the next bull run:

User Education

The market is still a growing industry. Irrespective of the huge strides it has made in terms of adoption, there remains a huge need for user education.

Markus Levin, the co-founder of the geospatial blockchain network XYO, opines that 2022 revealed the chink in the armor of crypto, and the industry has to win over its detractors once again.

He said, "for another bull run to capture us by storm, there needs to be a restored sense of authenticity, security, and sustainability in addition to a favorable macro environment."

He further spoke on how user design and education remain hurdles to the overall community. "Blockchain is meant to be accessible to all, but the community lingo overwhelms the average user."

Volatility and Inflation

BTC has had some wins this year: reaching a 16-month high on the Fear & Greed index, breaking the $25K resistance price, and increasing by 60%. USDT has also had its time in the limelight, to the end that it boasts almost $80B in market cap.

These huge inflation numbers could pique investors to renew their interest in crypto. If more investments are pumped into crypto, it could signal a positive sentiment in the market, which has a far-reaching effect.

William Zielke, the CMO of a crypto firm, opined, "Bitcoin is emerging as a hedge against inflation and the growing banking uncertainty. I think we'll continue to see crypto reinsert itself into the conversation as markets search for stability.

The market backdrop right now presents an opportunity for crypto to reclaim its moment on center stage amid so much volatility."

Bitcoin Halving

Bitcoin halving takes place every four years, where the amount of BTC that can be mined reduces by half, thus reducing the rate at which new coins are generated. The maximum number of supply is capped at 21 million.

Gary Chen, the managing director of the crypto exchange, Bitget, said, "After halving, the price of Bitcoin always increases, and other cryptocurrencies follow it." The next event is slated for April 2024.

Protocol Utility

Crypto protocols enable information to be transmitted reliably and safely across networks. There are expectations that many would focus on utilizing cryp[to protocols. "Investors will be looking for protocols that are solving real-world problems and delivering tangible benefits to users," said Eric Chen, the co-founder of a blockchain protocol, Injective.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.