The Next Crypto Bull Run: Rinse or Repeat

With the crypto market waiting. For the next run
up, Will history repeat Itself? The cryptocurrency market is widely known
to be incredibly volatile. And characterized by. Dramatic blow off peaks
where crypto assets achieve. Stratospheric prices. Followed by a sustained period of. Decline where drawdowns of over 80% is. Not out of the norm. This extraordinary. Price action. Has made. The cryptocurrency market. One of the most lucrative. Sectors to speculate
in, both for bulls and bears, since it is. Possible to obtain impressive. Returns
if the right strategies are applied. And as you might expect, the ability
to correctly predict How the market will move
or at a granular level, Which projects and platforms
will perform the best can. Allow traders to achieve returns. That are simply. Unheard of
in other sectors. And with the discussions That the crypto market
may be on the cusp of the next bull run. Many speculators are now beginning
to form. Their investment. Thesis. And with that in mind, here's
a look at how things might play out. So first of all,
we have. The four year cycle Widely regarded. As the coin that leads
the market. Bitcoin has historically. Demonstrated
a roughly four year price cycle. With its price action changing depending
on its proximity to the housing date, Which is an event that sees. Bitcoin's block rewards and inflation rate
cut in half every four years. As mentioned previously,
Bitcoin has already been through. Three four year cycles.

Having reached a new all time high price Between each halving event
and the cycle can be typically. Characterized by four smaller phases. So first of all,
there's the accumulation phase. So during this phase, the smart money. Begins to accumulate Bitcoin.
While its price is low. Bitcoin's price typically fluctuates
within. A near range,
while early movers build their positions. And trading volume typically. Remains low during the accumulation phase. And then there is the market phase. So this phase is. Characterized
by a short break. Out from the accumulation phase as trading
volume increases and demand for. Bitcoin increases
alongside growing. Adoption. This leads to a significant increase.
In the price of. Bitcoin, with the price At typically breaking its previous
all time high during this phase. And then there is the distribution phase. So this is the. Period where the early adopters start
to take profits as the price continues to. Rise and this leads to a decrease In trading volume
and the price starts to plateau. Bitcoin can be described
as a trading horizontally. Yet during this phase. And then there is the panic phase. So this is the final. Phase
where there is a market correction And the price of Bitcoin drops. Significantly as often leads
to a sustained. Bear market which can last for months
or even years before the accumulation. Phase begins. And during this phase,
most people are unable To stomach the drawdown
and end up selling at a loss. Further crashing the price. And indeed,
if the cryptocurrency market is moving

In the way that it did in previous cycles,
then we are currently in either of the. Latter stages of the accumulation phase
or the early stages of the market phase. And this would mean that
many fundamentally strong crypto assets. Are at or close to their lowest prices. Representing an. Attractive risk
or reward ratio for speculators. And this may be at least true for Bitcoin. According to the Collin TalksCrypto
Bitcoin. Bull Run Index. Or CBBI,
an indicator that combines nine metrics To see how likely
the bitcoin price is at the top or bottom. Bitcoin may now be undervalued
with its current CBBI value at 16. And to put this into perspective,
the last three times Bitcoin CBBI Sat at 16 on an uptrend,
It was valued at 6000 to 5000. Dollars and $281 respectively. And then there is changing narratives. So every bull market brings with it a. Range of key themes. And trends. And projects
that fit within these trends often. Outperform the market average,
while the first movers can. Sometimes go on to take the place
among the largest and best known. Blockchain projects, Which is the first mover advantage,
the most recent bull market Saw the meteoric rise of the player
to earn niche. A sector that sees gaming. DApp players rewarded in tokens for their
in-game performance or achievements. And this gave rise to crypto
gaming juggernauts Like Axie Infinity, Illuvium,
My Neighbor Alice and Alien Worlds. It also. Spawned. Several derivative narratives
like Move2Earn. The Metaverse was.
Also a prominent. Narrative. Of the last bull run Established metaverses,
Like the sandbox and Decentraland. Seen massive growth in terms of daily
active users and also market

Capitalization. It also saw a dramatic expansion
of the. Metaverse. Landscape with new players
like XENA and BlockTopia Throwing their hats into the mix. But most of all, 2019 to 2022
was characterized By the rapid adoption and expansion
of decentralized finance or DeFi. And this is a sector that. Has grown. To encompass thousands of DApp
and hundreds. Of different use cases. During this time, Ethereum
saw the total value lock. Or. TVL in. DeFi protocols soar over $100 billion. At its peak, while DeFi platforms
like Uniswap, Compound and Curve Began to rival the activity of their. Centralized competitors. So let's talk about.
The current narratives. Like previous Bull markets, the next bull cycle
will likely be dominated by a handful. Of pervasive. Themes that determine
which projects. Are built. Adopted and funded. Though the market is constantly changing
and it's impossible. To predict
which narratives. Will dominate the next. Bull market, a. Handful of potential. Examples are currently. Forming,
and some of which may go on to become A key narratives in the next bull run. Some of. Those key narratives are,
first of all, artificial intelligence, or AI Which is owed
to the massive success of traditional AI products like GPT3 and ChatGPT. The world's
eyes have now been opened to the. Sheer
potential of artificial intelligence. And in turn, there has been a major uptick
in the development activity

In the blockchain AI Sector. While prominent blockchain AI projects have seen their native assets
skyrocket in value amid growing demand And indeed, some of the most popular
AI projects have seen their native assets Increase by over 500% in the last
three months alone, including the likes. Of SingularityNet or AGIX,
Artificial Liquid intelligence or ALI And AIDPAD or AIPAD. Advancement in technology
is now enabling the development of. The next generation of. AI embedded. Blockchain projects. Some of which may go on
to define the industry. And then there is the key.
Zk-layer 2s Bull market. Popular layers 1 like Ethereum, Bitcoin
and even BNB chain were pushed To their technical limits
as the number of active wallets Skyrocketed alongside
soaring DeFi activity. Layer 2
platforms can help to alleviate the. Load on layer 1 By batching transactions. Together off. Chain before submitting a validity proof
To a layer 1 to. Finalize the transactions. And this can help to dramatically scale
the number of transactions The L-1 can process
while improving gas efficiency. To these smart contracts
and users. An easy. The Zk-layer 2 narrative has. Been gaining momentum in 2023,
and dozens of projects Are now looking to deliver
the benefits of layer 2 to the masses. And then there is the. Arbitrum Ecosystem. So in. February,
Arbitrum recorded a more on. Chain transaction activity
than the underlying. Ethereum blockchain. For the first time. Likewise, the total value locked in. Arbitrum Based a DeFi Protocols. And DApps that now Sits at almost $2 billion, making Arbitrum
the fourth largest blockchain by TVL.

Meanwhile, the number of.
Active Arbitrum addresses. Has increased significantly. In recent. Weeks,
having more than doubled. In the first two months of the year alone. In total, the number of active. Arbitrum addresses. Is now up a 1,000% in a. Year. So let's talk.
About the current situation. As you might be. Aware, the cryptocurrency market
is currently. Expanding
In the first two months of 2023 alone, The total market capitalization of. All cryptocurrencies grew. From 795 billion to 1 trillion,
with the average. Cryptocurrency recording a gain of 35%. In this time
and year to date, Bitcoin has. Increased by around 40%. Outperforming the market average
by a significant. Degree. And this is common during the accumulation
phase in the market cycle, with Bitcoin Typically leading. The market, while. Fundamentally strong
altcoins are clocking. Impressive returns. And as a result, Bitcoin's market
dominance has. Slightly increased up from 40%
to around 42% since the start of the year. In a full. Fledged bull market. It isn't unusual for Bitcoin's dominance
to top out around 70% at its peak. Or fall to under 40%. At times. And Bitcoin's dominance usually. Increases in the early stages of a bear. Market
as money drains from altcoins to Bitcoin. And as the market shifts
gear and moves into a. Bull market. Money then tends to trickle.

From large caps. To mid-caps and then finally to small
and micro-cap coins. This results in a. Gradual reduction in. Bitcoin's dominance,
and because of this, the end of the bull. Market. Is often
coupled with a dramatic. Rally for. Altcoins, which serves as the last. Hurrah
before the market enters a bear trend. Moreover,
the number of Bitcoin withdrawn from. Exchanges or outflows typically decreases
when the. Major market players enter accumulation
mode, increase withdrawals can. Actually indicate
that the. Market is turning bullish. Since. Holders appear
less willing to trade in their bitcoin. And then there is project funding. So in the last 2017. Bull market. The vast majority of new projects
conducted an initial coin Offering or ICO Allowing individual
and nonprofessional investors to buy Tokens at the best available price
before they list on public exchanges. And many of today's largest projects Have conducted an ICO in 2017,
including File COIN and Polkadot. In the 2020 to 2021. Bull market, the.
Main public sale. Fundraising. Round actually shifted, and most projects
instead held either in initial. Exchange offering. IEO or initial Dex. Offering. IDO projects were able to. Crowdfund from centralized exchanges or
decentralized exchange users respectively. And these projects Could then directly list their token
on the associated exchange platform, Simplifying the process For projects in participants ideal
when IEO raises tend to be significantly. Lower than the average for. ICOs in 2017. But the total number of. Projects. Raising funds was dramatically higher.

For comparison, there were around. 966 ICOs held in 2017 Compared to several
thousands IDOs in 2020. During the last cycle,
standalone launchpads like. DAOmaker And BSCPad rose to prominence,
helping users Access some of the most profitable
projects of the time. According to recent data, crypto
fundraising Has actually increased month on month
since December of deals in 22, But the total amount being raised is still
at its lowest point since December. Of. 2020. Nonetheless, this is the first time
since August of 2021 that fundraising has. Increased for three consecutive. Months, and this indicates That funds are beginning
to cautiously ramp up in investments. So which one do you think
the next bull cycle will start? Let us know in the comments down below.

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

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