Although enthusiasts are expecting the next crypto bull run to begin in May 2024 (following Bitcoin’s halving), experts predict that the bull run may come sooner.
Here are a few reasons why the crypto bull run may begin in 2023:
1. Scores from Technical indicators
Considering the price history of bitcoin in the past five years, whenever there’s an extended downward trend, a rally usually follows suit.
This was the case when bitcoin began a new uptrend in early 2019 and early 2020. Based on the extended bear market of 2022, bitcoin is set for a rally this year.
2. Bearish factors are giving way to a crypto bull run
One factor that largely contributed to 2022’s bear market is “rising interest rates.”
The Fed was aggressively raising interest rates to fight inflation, causing trillions of dollars to flow out of stocks, cryptocurrencies, and other assets.
But towards the end of 2022, inflation started coming down. US inflation fell in October 2022 and further in November, and may continue to fall in 2023.
Therefore, we can expect the Federal Reserve to soften its stance on rate hikes, and this will be very bullish for crypto.
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3. Futures markets favor a crypto bull run in 2023
Toward the end of 2022, futures markets gained influence in moving prices while the spot trading volume and liquidity on cryptocurrency exchanges dried up.
This may lead to a crypto bull run since a contrarian price reaction against a crowded trade position may occur.
For example, Solana’s latest pump in prices shows a short squeeze of driving prices. SOL’s price surged over 27% from $13 and $200 million in SOL shorts were liquidated between Jan 6 and Jan 8, 2022.
Also, many traders are still net short on numerous altcoins like APE, TRX, BCH, and GALA.
Thus, providing buyers the opportunity to push the price up and hunt the stop-loss liquidity of perpetual swap sellers.
4. Continuous adoption calls for a crypto bull run
No doubt, 2022 recorded a lot of selloffs, but at the same time, a good number of financial institutions and businesses got into crypto.
BNY Mellon, BNP Paribas, DZ Bank, etc. joined other institutions to launch cryptocurrency services in 2022.
This signifies a continuous growth in the size of the cryptocurrency market and a possible bull run.
Moreover, many brands and businesses have started dabbling in NFTs, Web3, and the metaverse with fashion houses, sports teams, and franchises, taking the lead.
Furthermore, various central banks are plotting to launch CBDCs and we may see more countries like Tango adopting Bitcoin as legal tender.
It then goes without saying that the groundwork for a crypto bull run is being laid both by decentralized and traditional markets.
Also read: This Is Why Bitcoin Will Be Accepted As A Legal Tender Globally Or Never!
Advice for investors?
Investors are advised to put money into projects that champion current trends.
NFTs and Web3 are hot right now, so, Ethereum is a good option for investors seeking long-term profit.
As one of the top smart contract platforms, it accounts for 58.8% of the TVL in the whole cryptocurrency ecosystem. Wow!
Additionally, top players like Hunter Horsley and Robert Kiyosaki suggest that Bitcoin will lead the next bull run.
Other less expensive tokens that have gained the recommendation of analysts are ADA, MATIC, DOT, XRP, and BNB.
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