PWSHub News

These Macro Factors Could Fuel the Longest Crypto Bull Run in History

Crypto markets have reached their highest levels for almost two years as total capitalization approaches $2 trillion. They have been buoyed by Bitcoin topping $50,000 this week, giving analysts plenty of fuel for speculation as to why things are different this time around for a crypto bull run scenario. 

Crypto market capitalization is at $1.97 trillion, its highest level since April 2022, when things looked very different. 

Crypto Market Bull Run Fundamentals 

Back then, crypto markets were falling from their $3 trillion peak in November 2021 and entering bear market territory. This time around, they are coming out of a two-year crypto winter and have several fundamental factors not seen in previous cycles. 

Total crypto market cap 2 years. Source: CoinGecko 
Total crypto market cap 2 years. Source: CoinGecko 

On February 12, Syncracy Capital co-founder Daniel Cheung predicted a good chance this bull cycle would end up being,

“The largest in terms of market cap creation and longer in duration than expected.”

It is the first time the crypto bull market has aligned with the start of a Fed easing cycle, he noted. The US central bank is battling to keep inflation low and drop interest rates following two years of aggressive hikes. 

Moreover, crypto markets remain in a “buy the dip” mentality absent a severe macro shock, he said. There has also been an absence of retail interest, which means things are still early. This week, BeInCrypto reported on the bear market levels of social engagement and search activity for Bitcoin and crypto. 

Read more: Bitcoin Halving Cycles And Investment Strategies: What To Know

Additionally, crypto ETFs provide “sustained bids into the asset class.” He added,

“We’re starting to see many large TradFi investment firms looking beyond the majors.”

There is also an abundance of narratives and subsectors emerging within crypto this year. These include artificial intelligence hype, real-world asset tokenization, restaking, etc. Cheung noted that these factors could,

“Help drive sustained pockets of wealth creation amongst investors in the asset class.”

Finally, he predicted a more positive regulatory approach given BlackRock’s entry into the ecosystem. Moreover, a lot of the bad actors were wiped out in the previous cycle. 

Bitcoin Back at $50,000 is Different 

On February 13, Bitcoiner “Mitchell” offered his thoughts on why Bitcoin at $50,000 is different this time. The last time the asset traded above $50,000 was in December 2021. 

He commented that more than half of the BTC supply was “held by lettuce hands,” presumably referring to retail traders who often panic buy and sell. 

Read more: Bitcoin Price Prediction 2024/2025/2030

Moreover, FTX was still in operation, as was the Terra/Luna scheme, which ultimately failed. It was also during the fastest US interest rate hikes in history, he added. 

This time is very different, with 70% of the supply “held by diamond hands” and passive Wall Street bids through ETFs. It is also just a couple of months away from the Bitcoin halving, and rate cuts are coming this year. 

The retail FOMO has yet to occur while institutions are quietly stacking. Therefore, the price will only go one way as this super cycle plays out over the next year or so. 

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Source: beincrypto.com

Related stories
2 weeks ago - February XX, 2024 Shareholder Letter Fourth Quarter and Full-Year 2023 February 15, 2024 Exhibit 99.1 Fourth Quarter and Full-Year 2023 1...
2 weeks ago - Data from past cycles entered around halvings and a key technical analysis tool suggest that the path of least resistance is higher.
3 weeks ago - Partnerships with SingularityDAO and Circle, technical breakouts, and falling exchange reserves analyzed in predicting LINK's bullish 85% surge.
1 week ago - The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Other stories
3 minutes ago - State-owned newspaper cautions Chinese crypto investors despite trading ban Asia • March 3, 2024, 11:54PM EST Published 1 minute earlier on Quick Take State-owned newspaper Economic Daily wrote that investors should...
14 minutes ago - Quant analyst PlanB says that Bitcoin (BTC) has now entered the stage of its market cycle where extreme price pumps and volatility are commonplace.
15 minutes ago - Stay informed with insights on the latest developments and advancements in Stellar (XLM) cryptocurrency. Explore its evolving ecosystem and potential impact.
35 minutes ago - Indonesia's Commodity Futures Trading Regulatory Agency (Bappebti) is reportedly asking the Ministry of Finance to re-evaluate the current tax regime for cryptocurrency transactions.
48 minutes ago - Discover the latest fusion of gaming and cryptocurrency with our in-depth exploration of the top trends shaping the future of Play & Earn gaming in 2024
1 hour ago - At a current market cap of $2.3 trillion, the cryptocurrency market is back in style. Thanks to the surging price of Bitcoin (CRYPTO: BTC), the world's most valuable digital asset, investors might be eyeing other tokens in the hopes...