Who doesn’t appreciate the feeling when the financial markets are climbing? In the world of crypto, it's even more exciting because a bull run represents a period of sustained growth and positivity. For both seasoned investors and enthusiastic newcomers, understanding a bull run is key to navigating the world of crypto investing.
What is a Bull Run in Crypto?
A bull run in crypto is characterized by a dramatic and continued increase in market prices, typically at least 20%. This phenomenon is particularly notable in crypto because of its volatile nature which can lead to rapid wealth accumulation.
Unlike traditional markets, where bull runs might unfold over months or years, in crypto, these spikes can occur much more quickly, highlighting the fast-paced nature of this digital economy.
Characteristics of a Crypto Bull Run
Crypto bull runs are characterized by their distinct volatility and momentum, with several key features defining these periods:
- Rapid price increases
- Strong demand over supply
- Trigger events such as technological breakthroughs and favorable regulatory changes
- Positive market sentiment
Economic Indicators & Catalysts
Crypto bull runs can be influenced by both global economic conditions and specific events within its sector. A robust global economy, marked by GDP growth and decreasing unemployment rates, often sets the stage for bullish activity in crypto markets as general economic confidence spills over. Notable catalysts such as Bitcoin halvings, which affect the supply of new coins being issued every day, have historically led to significant price surges.
Additionally, mainstream adoption and substantial investments from large corporations can ignite market enthusiasm, driving prices upward. For example, when the Spot Bitcoin ETF was approved by the SEC, the inflow of large institutions buying Bitcoin to back their fund increased significantly. External factors, like geopolitical uncertainties or economic crises, also tend to push investors toward crypto as alternative investments, further fueling bull runs.
Is the Bull Market Bound to Keep Going?
As the crypto market continues to evolve, investors are observing the effects of the recent Bitcoin halving and the potential launch of a spot Ethereum ETF. These events, alongside the Spot Bitcoin ETF launched in early 2024, have injected a fresh wave of optimism, sparking discussions about the sustainability of the current bull run. With significant events like these, the crypto market often experiences increased activity as investors act on the potential impacts on price and market dynamics.
Lately, there has been a noticeable increase in individuals buying and selling cryptocurrencies, particularly through tax-advantaged accounts at iTrustCapital. With 24/7 access to the markets, investors at iTrustCapital can strategically make their next moves based on the latest market trends and developments.
Want to learn why people are buying and selling at iTrustCapital? Take a look below.
DISCLAIMER
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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