As the leading crypto by market cap dusts itself off and picks itself up following an 85% fall over the last two years, bullish sentiment and exuberance are once again surrounding Bitcoin and the rest of the crypto market.
With a bottom essentially confirmed, the price of Bitcoin has risen sharply due to FOMO. The resurgence of speculative hope has caused may crypto analysts to reflect on the last crypto bull run that took Bitcoin to its all-time high of $20,000, and consider what’s changed since that could lead to an even larger bull run this time around.
Key Factors Fueling The Next Bull Run To Even Higher Heights
When Bitcoin exploded into the public eye in 2017, the vast majority of the general public had never before heard of the cryptocurrency created by Satoshi Nakamoto. The public’s curiosity being piqued and their front-seat view as Bitcoin nearly doubled in a month from $10,000 to $20,000 sparked FOMO buying at the peak of the bubble pop.
A bear market erased all of the positive sentiment around the crypto space, with many calling for Bitcoin’s funeral as it fell lower and lower in value.
But in recent weeks, Bitcoin has once again turned around and gone parabolic, rocketing from $4,200 to current levels above $8,000 in less than 6 weeks. The surge has caused the market to once again speculate and dream of what riches the next bull run will bring.
Most crypto analysts expect the next bull run to eclipse all gains witnessed during the 2016-2017 bull cycle, and for good reason.
One argument for why the next bull run will be “biblical” will be once again due to the public’s FOMO. “Normies” as one analyst calls them, now know that $20,000 BTC is possible, which could cause them to flock to the crypto asset in fear of missing out on another massive rally.
Another reason is due to the wide variety of options available for investors, even institutions, to gain exposure into crypto markets. With Bakkt on the way, Fidelity having launched, and so much more, Bitcoin is easier to invest in than the last run. Also, the effect that Square’s Cash app is having on the Bitcoin supply cannot be understated.
While crypto has yet to be around during a major global economic crisis, it’s designed to be a hedge during downturns similarly to gold. With “major financial markets” crashing in the wake of escalating trade tensions between the US and China, Bitcoin is becoming increasingly attractive.