When will Bitcoin see a significant rise? When will the market shift from its current stagnation to a more dynamic phase? Analyst Crypto Banter has identified five key factors that could trigger a major Bitcoin bull run.
Catalyst One: The Election
The upcoming election is a major factor to watch. Elections often bring volatility, but they can also have a significant impact on the market. Donald Trump, a strong crypto advocate, aims to position the U.S. as a global leader in space. On the other hand, Kamala Harris has recently shown increased interest in crypto, potentially in response to Trump’s stance. The election’s outcome could greatly influence the future of the crypto market.
Read more: China Crypto Market Set for Growth Despite Bitcoin Slump
Catalyst Two: M2 Money Supply
The M2 money supply, which includes cash, checking deposits and other liquid assets, has recently hit new all-time highs. This increase in available money could lead to greater spending on risk assets like Bitcoin. Historically, Bitcoin has tended to rise in value following peaks in M2 money supply. With M2 reaching a record high in January 2024 and crypto markets beginning to respond, more liquidity could drive further gains in Bitcoin and other assets.
Catalyst Three: Bitcoin Halving Cycles
Bitcoin’s historical halving cycles have consistently been followed by substantial price increases. For instance, Bitcoin surged 8,800% in 2012, 2,185% in 2016 and 548% in 2020, though these gains followed periods of consolidation. Currently, Bitcoin is in a lengthy consolidation phase, similar to past cycles, suggesting that significant price increases may be on the horizon.
Catalyst Four: Rise of Bitcoin and Ethereum ETFs
This year, $19.3 billion worth of Bitcoin has been purchased through the U.S. ETFs, indicating strong interest from major asset managers. The holdings in these ETFs are almost on par with those of Bitcoin’s creator, Satoshi Nakamoto. The success of these ETFs may lead to more approvals for crypto ETFs, facilitating institutional investment in cryptocurrencies.
Catalyst Five: Anticipated Interest Rate Cuts
Expectations of interest rate cuts could also be a catalyst. Lower interest rates make borrowing cheaper, potentially increasing investments in riskier assets like Bitcoin. Historically, lower rates tend to boost markets as investors shift from safer assets to more speculative ones like Bitcoin.
Cre: coinpedia.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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