We commonly use the terms "bull run" and "bull or bear market" in the world of cryptocurrency to describe the overall trend of market movements. But what exactly does a "bull run" mean in crypto?

In simple terms, a bull run refers to a period in crypto where the prices of digital assets are steadily increasing over a sustained period of time. Just like in traditional markets, the crypto bull market sees significant investor optimism driving prices higher.

During a crypto bull run, market sentiment is largely positive, and there is widespread confidence in the future potential of crypto assets. As new money flows into the space, prices rise fairly consistently, and investors are eager to capitalize on the uptrend.

Gains of 20%, 50%, or even 100% or more are not unusual during the heat of a crypto bull market. Join us in this blog as we go further in detail about the bull run, the cause, how long it lasts, the next bull run, when it will begin, and more. Let’s start with the causes of the crypto bull run!

What is causing the crypto bull run?

There are a few common factors that tend to kick off bull runs in the crypto world:

Institutional investment increased

When large financial players like banks, hedge funds, and corporations start pouring real money into crypto, it raises awareness and fuels demand. In 2024, we've seen more interest from major players.

Positive regulatory framework

Clear, supportive regulations that provide legitimacy to cryptocurrencies give both retail and institutional investors more confidence. In 2024, we have made significant progress in this area.

Inflation hedging

Bitcoin and other cryptocurrencies have proven valuable as an alternative store of value against fiat currencies devalued by money printing.

Technological upgrades

Major network updates that improve scalability, transaction speeds, and decentralization bring more real-world utility to cryptocurrencies, adding to their investment case. In 2024, there has been upgrade to many crypto coins and networks.

Herd mentality

As cryptos start rallying, it attracts FOMO (fear of missing out) as people rush to get in on the action, and momentum crypto trading takes over. During parabolic bull runs, this snowball effect fuels massive gains.

As we explore further, many signs indicate that conditions are ripe for another crypto bull run heading into 2024. Despite recent volatility, long-term fundamentals and adoption trends remain intact. Let's examine some current data points that suggest a new bull run may just be starting!

How long is a bull run cycle in crypto?

Most analysts point to cycles lasting 2-4 years on average for crypto bull markets. From late 2020 through late 2021, we saw Bitcoin rise over 1,000% during an epic bull run. Prior to that, the 2017 run saw prices multiply over 20 times before crashing heavily the following year.

The 2016–2018 cycle lasted around 2 years, while the 2020 bull phase was closer to 1 year. So in a normalization of adoption, we might expect the next run to last 2–3 years before pulling back.

Given the scale of growth, crypto bull run phases need consolidation periods, or crypto winters, to shake out weak holders and accumulate new long-term investors. Most experts foresee 2024–2026 as the prime window.

What is the expected bull run in crypto?

If history repeats itself, the next crypto bull run could see mind-bending gains. Based on S2F stock-to-flow models, some of the most bullish projections see Bitcoin reaching $100,000–$150,000 by late 2024 or 2025.

Ethereum, the top altcoin, may follow with 5–10x returns over its current price. Smaller but promising assets could realistically be 10-100x for patient long-term buyers.

Of course, past performance isn't a guarantee of the future. However, considering we're still early in terms of mainstream crypto adoption, there's ample room for growth as millions more users and billions more dollars enter the emerging digital asset class.

As new technologies like layer-2 scaling and Web3 applications develop, don't be surprised if we see record highs that make the 2017 top pale in comparison. Exciting times may lie ahead for crypto investors.

Will crypto see another bull run?

Most experts are optimistic that crypto will experience additional bull cycles in the years to come, barring any black swan regulation or hack events.

Here are a few factors that point to crypto's long-term potential:

Rising global adoption

Ownership demographics are expanding to include more young and middle-aged investors from around the world. Major influxes in India, Latin America, and Africa could turbocharge gains.

Innovation continues

The blockchain industry isn't standing still. Novel coins and advancements like Ethereum 2.0 foreshadow yet-to-be-conceived new use cases.

Inflation protection

As long as central banks keep money printers running hot, the hard-capped supply and decentralization of crypto make it a compelling alternative asset.

Store of value thesis

With tens of trillions in global wealth, even a fraction shifting to Bitcoin could send its price significantly higher over time. As value transfer improves, it gains viability as both an investment and a currency.

So while another crypto winter is certainly possible, continued technological progress and growing market adoption indicate this emerging asset class has strong long-term prospects for recurrent bull run phases in the decades to come, making crypto investment a prudent lottery ticket.

Will there be a crypto bull run in 2024?

Many analysts are pointing to 2024 as a likely launch point for the next crypto bull run, based on both on-chain data and macroeconomic factors.

• The last Bitcoin halving occurred in May 2020, which tends to signal an impending relief rally after supply reductions go into effect. It usually takes 1-2 years for this impact to fully materialize.
• Inflation worldwide remains stubbornly high, increasing demand for alternative stores of value not dependent on single governments.
• The continued expansion of regulated crypto services means traditional players and their capital are flowing into the space, buoying prices.
• Through 2024, technological advancements such as Ethereum 2.0 and new layer-1 networks could unlock significant new utility and use cases.
• Recent data shows Bitcoin's volatility is declining to a 1-year low; a potential sign of accumulation has begun tilting the supply-demand balance bullishly.

So while past performance doesn't guarantee future outcomes, 2024 shaping up as an inflection year aligns with historical patterns and the major drivers emerging that could power crypto to new highs.

Of course, nothing moves in a straight line, so pullbacks are likely. However, it seems that the groundwork is in place for a spectacular surge in 2024.

When will the crypto bull run begin?

It's impossible to call market tops or bottoms with perfect accuracy, but on-chain metrics and crypto derivatives positioning provide some clues on when the next sustained crypto advance may hit top gear:

• Late 2023/early 2024: Many analysts think the early signs of life we've seen in Q4 2023 could extend into a broader low-volatility accumulation phase over the next 6–12 months.
• Mid-2024: This is when the Bitcoin halving 2024 impact historically begins to accelerate upside price action. Momentum likely builds from here.
• Late 2024: If the halving follows prior 2-year cycles, this is when its effects may peak as wider recognition sets in and FOMO takes over.
• 2025: Some projections see Bitcoin testing new all-time highs towards the end of 2024 or early 2025, with altcoins outperforming more dramatically next year.

While 2023 brought intermittent rallies, the bigger sustained crypto bull market advance could realistically swing into full gear sometime in mid-late 2024, according to on-chain trends and Bitcoin's block reward schedule. But as always, expect healthy corrections along the way up.

Why could the next bull run be the most explosive one yet?

After a long and arduous crypto winter that saw values plunge industry-wide, could the next bull run overshadow all previous cycles in its amplitude?

Here are a few reasons why it has the potential to be the biggest yet:

Institutional momentum

Major corporations like Fidelity and BlackRock launching crypto arms show demand is building at the highest levels. Pension funds and other large players may now be bigger buyers.

Derivatives positioning

Pro-crypto bets on CME Bitcoin futures are hovering near record highs, unlike prior bull cycles. This signals that traders foresee more upside before the Bitcon halving 2024.

Expanding utility

Technologies like Ethereum 2.0 and cross-chain interoperability exemplified by Polkadot or Cosmos could massively increase cryptocurrency's practical use cases and hence its long-term value.

Emerging markets

Countries experiencing high inflation or economic turmoil may turn to cryptocurrency in greater droves this cycle, like what happened with Latin America in 2021. As adoption increases, their buying power could far exceed previous bull runs.

Larger developer pool

Instead of just a couple hundred coders working to advance major blockchain protocols in 2017, today there are thousands contributing to the advancement of the most promising coins.

So while all crypto bull runs face volatility and uncertainty, the combination of greater institutional involvement, rising global utility, and swelling developer ranks provides a reasonable rationale for why gains in the next prolonged uptrend may venture into uncharted territory.

The bottom line

By exploring the historical patterns and fundamental factors at play, we can gain helpful insight into the often unpredictable cryptocurrency markets.

Adoption milestones, macro backdrops, and aligning on-chain trends point to 2024 as a potential inflection year, igniting the next crypto bull run.

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