November 2020 was the month when Bitcoin exceeded its previous all-time high. After that, 2021 was the golden year for bitcoin. We saw bitcoin reaching an all-time high of almost $70,000 and any other cryptocurrency to its highest price in November 2021. Many experts had started to believe that bitcoin is going to reach the $100,000 mark. But after November 2021, bitcoin started to lose its momentum when the market became fearful of some bad news. By the start of the new year 2022, it dropped back below $35,000, and this September we can see that bitcoin is struggling to cross $25,000. If you compare this to 2018's all-time high, it may not seem like a bad price at all.
However, while there was a peak in the price of bitcoin, many existing and newly arrived investors believed that the price will go higher, so they bought or held it on top to make more money. In this scenario, these crypto investors, even everyone who is associated with cryptocurrency, have one question in mind: "When will the next bull run come?"
In this article, I'll explain what I think about this subject. I'll try to accomplish this by looking at some historical data and determining what needs to be done for a bull market. Although I believe that a bitcoin always will be a bitcoin.
Demand makes cryptocurrency so valuable
What we saw in the past was that whenever a market period came where every digital asset consistently rose, there was a high demand for it. I believe people's demand for a particular asset is the only thing that prices an asset. Many other things are associated with an asset's getting priced, though. But I think demand made bitcoin or any other cryptocurrency where it is now. Even though demand is backed by many facts, such as people's sentiments, the world economic situation,
future expectations, etc. If the price rises, it indicates these facts' growth. Overprice or a lower price than expectation of an asset makes less demand also.
In 2021, we could see that when many institutions, countries, and famous individuals came in to adopt cryptocurrency, as a result, demand increased and skyrocketed the price. But now we can see that consumers are unwilling to buy crypto because those facts are negative now. People's sentiment is fearful, the world economic situation is very bad, FUDs are floating in the air, and many powerful countries have not fully regulated cryptocurrencies yet. These facts are stopping trillions of fresh money to come in. This is why the price is going down rather than going up.
I believe the price of bitcoin or any other cryptocurrency will drop more than it is now until people's demand for digital asset increase.
When will the demand come?
We still have many crises going on such as global inflation, the failure of the US Federal Reserve to take down the interest rate, the conclusion of the war between Russia and Ukraine not coming to an end, and China and Taiwan's conflict in an unstable situation, also, many geopolitical tensions going on, we are still facing many problems that affected our lives or society after the covid pandemic, and many crypto-related problems I mentioned before are still in the corner.
People's lives have been highly affected by all of these problems financially, which makes it hard for almost everyone to get involved in financial services, including Bitcoin and cryptocurrencies. I believe we will see a much larger demand for cryptocurrencies when all these problems start to get relief. But the price declination may be lower than where each cryptocurrency is now if this process takes a long time.
But there are also a few other things that can trigger the Demand in a very short time which will fuel a bull run.
- Imagine, an economically powerful country adopting Bitcoin as El Salvador did. I believe every resistance line will break af. But our beloved government loves to control things and they have a fear that they can't fully control Bitcoin or any other crypto. One thing is for sure, people are liking cryptocurrencies all over the world. Millions of people will use it, and the government will have no choice but to adopt it. Because they are the servant of the people. They do what the majority wants.
- Web 3.0 can be a crucial point for the next bull run. If many popular platforms, such as Twitter, YouTube, and Facebook, begin to use blockchain technology in the future (I believe they will do this to survive, but it may take a long time to be implemented.) or if a strong blockchain-based competitor emerges to replace these centralized platforms, there will be no doubt about an impending bull run. A crowded place always is a perfect place for investors or whales, and these platforms' billions of users will attract them to invest billions.
The above-mentioned things can make significantly the "market demand", and that can lead the market to a nice price jump. But many experts doubt that the next bull run won't happen in 2022 or 2023 and they are sure that we are going to see a brutal crypto winter in these years. As they expect the next bull run will happen in 2024. Because the bitcoin 'Halving event will occur in 2024. Historical data show that there is always a spike in bitcoin prices after every halving event. Considering historical data and basic economic principles, I can tell you one thing 2024 or 2025 will be the sweetest year to watch a crazy bull run happening. We may see $100,000 bitcoin there.
Conclution
Despite Bitcoin's successes, many traditional investors still doubt its future. They confidently say: "Bitcoin will die", and "Bitcoin is a bubble".
I think the following bull run will be sufficiently large to silence them and it will prove to them that they were wrong. But this may take time to happen until then we need to survive the bizarreness of a brutal winter. The funny thing is, everyone wants the price to hit the all-time high as soon as possible.
A wise gentleman once quoted something similar to this:
"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. " — Paul Samuelson
About Me
My name is Sagar Ahmed. Recently I left my job to do what I love the most. Blockchain technology always attracts me. Unfortunately, I never managed to get into it fully. But now I think I made my mindset to work on my passion by improving my coding skill to become a blockchain developer. Writing is also something I enjoy, so often I will try to write on the hive about a wide range of topics.
Technically this is my first blog post on the Hive blockchain. I am not a professional writer or a financial advisor, the things I mentioned above are only my thoughts. If you enjoyed this article, then don't forget to support me by upvoting and re-blogging. Your support can be helpful in my life.
English is not my native language, but I tried my best to deliver my point of view to you. If I mentioned any incorrect information, I would be so grateful if you could let me know by commenting below.
Thank You!!