The simple answer – next year, 2024. To be a little more specific, April 2024.
How do we know that? Because that is when the next Bitcoin Halving takes place.
And history has shown since 2009 that there is always a crypto bull run following the bitcoin halving and bitcoin bull run that follows.
Of course, it must be remembered that timing the market is impossible. At least we here at Investment Mastery certainly steer clear of that!
Instead, we rely on our knowledge, the expertise of our investment coaches, and continual, in-depth, research.
So, if you want the best information and intelligence about the next crypto bull run – keep reading as we dive in deep with everything you need to know so you can be ready to capitalise on the next crypto gold rush.
What is a Bull Run?
In investment terms, a bull run (or bull market), refers to a period of time when the prices of a particular asset class – i.e. stocks, bonds, or commodities – start rising, or are expected to rise.
Understanding Crypto Bull Runs
Like bull runs in the traditional stock market, a crypto bull run happens when investor confidence grows about the future of the crypto market.
Key Characteristics of a Bull Market
- Rising Prices
- Positive Sentiment
- Increased Trading Activity
- New Investment Highs
- FOMO (Fear of Missing Out)
Analysing Past Crypto Bull Markets
Looking back at past crypto bull markets provides useful insights into how the crypto market works, how people invest, and what makes prices go up.
Here’s what we’ve learned from previous crypto bull markets:
- Big Price Jumps: During crypto bull markets, prices go up a lot and quickly. Take 2017, Bitcoin’s price went from less than $1,000 to over $19,000 in a short time.
- Market Cycles: Like the stock market, the crypto market has cycles, with times of big gains (bull markets) followed by times of losses (bear markets). Understanding these cycles can help you decide when to buy and sell.
- Speculation: In bull markets, many people buy crypto because they think they can sell it for more money later. This can make prices very unstable.
- Media Influence: What the media says can influence people’s feelings about crypto. Good news and famous people endorsing it can bring more investors. Bad news can cause panic selling.
- Altcoins Shine: Besides Bitcoin, other cryptocurrencies called “altcoins” often see big price increases during bull markets. For a while, some of them even do better than Bitcoin.
- Regulation Matters: Government rules can affect the crypto market. Good news about fair rules can boost confidence, while bad news can make people unsure and cause prices to jump around.
- Big Investors Join: As crypto develops, more and more big investors, banks and big companies start getting interested. Their involvement has made crypto seem more legitimate.
- Fear of Missing Out (FOMO): When prices go up fast, regular people get scared they’ll miss out on making money so they rush to buy crypto, which pushes prices up even more.
- New Tech: Bull markets can happen when exciting new technology or ideas are announced. Crypto projects that promise useful things or cool tech can get lots of attention and investment.
- Managing Risk: Even in bull markets, there are risks. Prices can fall suddenly, and it’s important to be prepared. Diversifying your investments, setting clear goals, and thinking long-term can help you manage those risks.
- Long-Term Thinking: Some people believe in the long-term value of crypto and blockchain tech, despite all the ups and downs. They hold onto their investments and try to get more over time.
Looking at any past crypto bull market can help you understand how the market works, but always remember that the crypto world is unpredictable and can be risky. Always do your research.
How Influential Will Bitcoin Halving Be?
The upcoming Bitcoin Halving is a pre-set part of Bitcoin’s functioning. Its main purpose is to control the supply of new Bitcoins entering circulation.
The Bitcoin Halving has a significant influence on the crypto market, including its impact on:
- Bitcoin’s price
- Bitcoin miner motivation
- Overall market dynamics
What is Bitcoin Halving?
The Bitcoin Halving (also known as the Bitcoin “Halvening”), is an event that occurs approximately every four years. The next Halving is expected to be in April 2024.
Bitcoin Halving Facts
- The Bitcoin network operates on a “deflationary supply model” – i.e. there is a limited supply of Bitcoin.
- The total supply is capped at 21 million Bitcoins.
- Approximately every 210,000 blocks, or roughly every four years, the reward that Bitcoin miners receive for confirming transactions and adding new blocks to the blockchain is cut in half. This process is called the Halving.
1st Bitcoin Halving (November 28, 2012):
The Bitcoin price was relatively low leading up to this event.
(Approximately $12.30 per BTC)
After the Halving, Bitcoin started a bull run, reaching a peak price of approximately $1,150 in December 2013.
This bull run was marked by substantial price growth, making Bitcoin more widely recognised.
2nd Bitcoin Halving (July 9, 2016):
Bitcoin’s price was on the up before the event, but the real bull run occurred afterward.
(Price before Halving: Approximately $650.63 per BTC)
The price of Bitcoin surged to an all-time high, reaching around $19,783 in December 2017.
The 2017 bull run attracted significant media attention and investor interest.
3rd Bitcoin Halving (May 11, 2020):
Bitcoin’s price experienced some volatility leading up to the Halving.
(Price before Halving: Approximately $8,762.46 per BTC)
After the event, Bitcoin gradually gained momentum and reached a new all-time high in December 2020.
The bull run extended into 2021, with Bitcoin hitting $69,000 in April 2021.
Will Bitcoin Halving Affect Overall Crypto Price?
Bitcoin Halving can have an indirect impact on the overall cryptocurrency market, as well Bitcoin itself.
Here’s how the Bitcoin Halving can affect the broader crypto market:
Positive sentiment around Bitcoin following the Halving can create a more optimistic atmosphere in the cryptocurrency market as a whole. Investors may become more bullish on cryptocurrencies in general, leading to increased investments across different coins.
Traders and investors may speculate – i.e. gamble – on the potential price movements of both Bitcoin and altcoins during and after the Halving event. This speculation can lead to increased trading activity and price volatility in the broader crypto market.
Development and Innovation:
The Bitcoin Halving has been known to stimulate innovation and development in the broader cryptocurrency ecosystem and blockchain projects.
Historically following a Halving, altcoins experience significant price gains relative to Bitcoin as investors seek higher returns in alternative cryptocurrencies.
Does Only Bitcoin Halving Influence Crypto Bull Runs?
After the last bitcoin bull run in 2021, DeFi solutions, NFTs, enterprise blockchain technology, and web3 dominated the crypto landscape.
Bullish market sentiment was also influenced by:
- Recognition by major brands
- Adoption by mainstream financial institutions
- Fear of inflation
- Increased online activity during the pandemic
Which Trends Could Fuel the Next Crypto Bull Run?
The metaverse is a big deal in the world of web3 and crypto. By 2030, it could be nearly 10 times bigger than the entire crypto market. Big companies like Microsoft, Amazon, and Apple are already getting into metaverse development.
Non-fungible tokens (NFTs) are unique digital assets that come with some risk but could be a major part of the next crypto bull run. They’re expected to become more popular, with new NFT standards and projects happening in the NFT loan market.
Decentralised finance (DeFi) could see a huge increase in the amount of money people put into it. DeFi will also become more secure, with new lending protocols and services functioning on multiple blockchains.
Tokenising Real-World Assets
Big companies are working on projects to turn their parts into tokens, making it easier to buy and sell them.
How Can You Prepare for the Crypto Bull Run?
To make the most of crypto bull run opportunities, it’s important to get ready.
Here are some tips to prepare for the upcoming crypto bull market in 2024:
Crypto Portfolio Strategies
- Bull markets are a great time to make money with cryptocurrencies. To make the most profit, it’s smart to invest in more than just Bitcoin. Consider a mix of well-established coins and newer ones that have the potential to grow.
- Balance your investments by putting some money into coins that have a strong history and are known to perform well. But don’t forget about newer, smaller coins that can increase in value a lot faster.
- Bitcoin might double in value during a bull market, but smaller coins could go up by 10 times or even 100 times their original price. Just remember not to invest too much in them because they can be very risky when the bull market ends.
- Don’t take unnecessary risks by investing in cryptocurrencies that don’t have much trading activity or unproven technology. Some coins get a lot of attention because they’re popular online, but that doesn’t always mean they’re a good investment.
- A smart investment strategy is to focus on solid, well-known cryptocurrencies and add a few riskier ones to the mix for the chance of higher returns.
Protecting Your Investments
Bull markets tend to breed excitement, greed, and carelessness – leading investors to make mistakes.
Proper security measures are essential to avoid becoming a victim of theft or fraud during periods of peak prices and activity.
Protection Do’s & Don’t’s
- Keep your cryptocurrency safe for the long term using a hardware wallet. Storing a lot of cryptocurrency on online exchanges makes it easier for hackers to steal, so it’s not a good idea. Multisig wallets are even safer because they need multiple approvals for transactions.
- Watch out for scams, especially when the market is doing well. Make sure to only download cryptocurrency apps from trusted places. Be careful of fake apps or anything that seems suspicious.
- Pay attention to rules and regulations because governments are starting to watch cryptocurrency more closely during bull markets. If you make money with crypto, talk to a tax expert to make sure you report it correctly.
- For online safety, always use strong and unique passwords, turn on two-factor authentication, use antivirus software, and consider using a VPN. Also, make sure your devices are encrypted. Never tell anyone your private keys or recovery phrases, and don’t click on links that seem strange or from unknown sources.
When you’re in a big crypto market that’s going up, it’s not just about making money. It’s also about keeping what you have.
Planning an Exit Strategy
When cryptocurrency prices go up fast in a crypto bull market, they don’t go up forever. Eventually, they start to go down.
Smart investors try to make money while prices are rising, so they sell some of their crypto before prices stop going up and start going down.
Signs that it might be time to sell
- Trading volumes going down
- More people losing money in risky bets
- People getting scared instead of greedy
It’s hard to know exactly when the best time to sell is, so one strategy is to sell a little bit at a time as prices go up.
You could sell 20% when prices double, 10% when they go up five times, and so on. This way, you can make money as prices go up while keeping some for later.
Don’t let the excitement of a big market make you keep all your crypto and not sell. Make a plan, stick to it, and don’t let your feelings take over.
REMEMBER: It’s important to be aware that bull markets are recurring, followed by bear markets – i.e. asset prices fall. Investors should always conduct thorough research on potential investments, even during bull markets, to make informed investment decisions and manage risk.