3 catalysts that could kickstart the next crypto bull run
- Bitcoin's halving, coupled withe strong conomic conditions and retail investment could be a big factor.
- Ripple's likely victory against the SEC could spark a new bull run for the broader market.
- Significant adoption of Bitcoin across the globe is also critical.
The 2021 cryptocurrency bull run saw outrageous all-time high prices for some of the most prominent projects in the space. While we are still far removed from all-time highs, 2023 has proven to be a successful year for the crypto space. Investors have been dealt blow after blow over the past year from the FTX blowup to this week’s cryptocurrency news of legal action by the US SEC against industry titans Binance and Coinbase.
Yet the price of Bitcoin has held up quite well in recent days, showing signs of support around $26,500. Sure, the bull versus bear debate remains fierce, but bulls are holding the upper hand in 2023 and are pointing towards several key events to support their thesis.
The foundation of Bitcoin’s priceCopy link to section
One of the key reasons Bitcoin doesn’t capitulate below $5,000 is because there’s now far more investment in the sector, substantial investment capital from banks, and it’s also got many more use cases.
Politically, the 2021 Bitcoin bull run saw El Salvador adopt BTC as a legal currency across the country. In Europe, the Swiss city of Lugano is vying for the title of the cryptocurrency capital of Europe.
Meanwhile, the casino industry is one example of a sector that’s understood the immense innovation of Bitcoin and used it to its advantage. Although you can use Bitcoin for payments at specific retailers, the crypto casino industry has exploded in popularity because of the increased security, more convenient deposits, and a digital, modern approach to sending and receiving payments.
There’s no concern about the bank freezing your deposit. Once you have connected your wallet, you can start playing poker, roulette, slot machine, or blackjack games immediately.
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That said, let’s examine three significant catalysts that justify the next bull run.
#1 – The HalvingCopy link to section
One of the most common terms in cryptocurrency investing and trading is “selling the news” – the theory is that whenever there is a big event or big news, it is already factored into the price, and the market moves downward.
It’s hard to imagine news as big as Bitcoin halving in 2024 could cause such a reaction. But, in many ways, this could be the piece of the puzzle that sets the fuse for a new bull run. The beauty, magic, and art of cryptography cemented into the design of Bitcoin to keep the asset deflationary and increase scarcity. This, in theory, should boost the price through the basic principles of supply and demand.
Other underlying factors need to be present such as strong economic conditions, strong retail investment, and more visibility in the space. Still, if all of these factors accompany the halving, then it could quickly propel the price of BTC into fresh bull-run territory in 2024, as retail investors often pour into the sector at times of high market positivity.
#2 – A Ripple victory against the SECCopy link to section
The doom and gloom surrounding the United States’ unclear and counterproductive attacks on the cryptocurrency industry have caused uncertainty in the digital asset space.
As a result, the main focus of many crypto companies is to obtain regulatory clarity, which has been a complex request for many years. But as Coinbase CEO Brian Armstrong told CNN on Wednesday, getting regulatory clarity is the main goal of the exchange’s impending legal battle with the SEC.
That goal could be scored sooner though. That’s because the legal tussle between Ripple, the multi-billion-dollar company behind the XRP ledger, and the SEC is nearing a court verdict. It’s a scenario that could change the whole trajectory of cryptocurrency and blockchain technology in the United States.
The case’s spine focuses on whether XRP is a cryptocurrency or an unregistered security. Since the legal action was initially filed in December 2020, XRP has been unavailable to trade in the United States. The price has been highly suppressed pending the outcome of this case. If Ripple and XRP can come out the other side with clarity and a big win over the SEC, this should send the price of XRP skyrocketing and hopefully pull the rest of the market up with it.
#3 – Significant adoptionCopy link to section
El Salvador’s innovative and forward-thinking leader Nayib Bukele adopted Bitcoin as a legitimate payment method within his country back in 2021. While it generated news headlines globally, El Salvador isn’t a key global player in finance or economics, so it didn’t have the astronomical impact you’d expect if a larger, more prominent country adopted it.
While other countries in the Americas region, like Cuba and Paraguay, have touted the possibility of Bitcoin as a legal currency, it would take a country with a top 30 GDP to shake the world and kickstart another potential bull run, and stranger things have happened.