Next Crypto Bull Run – Everything You Need To Know 2022. Will there be another bull run? If so when? This article will break down the crypto bull run for you!
Are you a crypto investor waiting for a bull run to get a big boom in your earnings? Are you wondering what actually a crypto bull run meaning is, and when will the next crypto bull run happen?
No need to bang your head against the wall anymore as we are here to make life easy for you. In this article, we will be covering each aspect of the crypto bull run history, particularly about the crypto bull run 2022.
Cryptocurrency is a game of crests and troughs. So, as an investor, you are always worried about the instability of a crypto coin. For such investors, a crypto bull run can be like “an oasis in the desert.” But how effective is it, and is another crypto bull run coming? Let’s discover.
What Is A Bull Run In Crypto?
To understand the role of a bull run in crypto, we first must understand the concept of a bull market. Bull market refers to markets going through sustained and sizeable growth for a considerable period.
Now, the understanding of bull run is fairly straightforward. We can define it as a period of time in which prices of assets in a market are continuously going north. In this period, demand is considerably higher than the supply.
Furthermore, the majority of investors are buying, and sellers are scarce. Moreover, the market confidence is high, and prices are touching new peaks. Therefore, if you ever see any crypto coin attaining a sharp rise, it can hint at a bull run coming up.
Now, assuming that you are now well-aware of the basic meaning of a crypto bull run, let’s talk about the backend mechanism that causes it.
What Causes A Crypto Bull Run?
There can be many triggers behind a crypto ball run, but the demand and price relationship is the prime factor. This relationship is itself influenced by many secondary factors. Let’s take a look at the most important one of them.
- Investor Confidence
You may know that the price of a cryptocurrency is heavily influenced by public faith in that asset. The investors who strongly perceive that a crypto coin will gain more value are called “bulls.”
With the rise in investors’ confidence, the positive feedback from buyers encourages more investors to invest in that coin. It results in a considerable surge in demand for the currency, and the end result is an increased price.
- Inflation Fear
Another important factor that I am sure you have not heard of before is inflation fear. Let’s understand with an example from the past. Back in 2020, an economic slowdown due to the COVID-19 pandemic hit the world, and now Governments were forced to find a temporary solution.
The US Government had to print a large amount of currency, and it caused fear of inflation amongst the investors. Back in history, investors were keen on buying gold when they sensed inflation.
Now, in the modern world, crypto is the way to go in such circumstances. So, this inflation fear prompts the investors to buy cryptos, hence increasing its demand and price.
- Bitcoin Halving
Bitcoin halving is an amazing phenomenon that happens every four years. It essentially means that reward for crypto miners is halved with respect to the number of blocks mined. It is done to limit the total number of bitcoins to 21 million.
So, after four years, when it happens, the supply of bitcoins decreases, and conversely, the demand increases. Bitcoin halving is the most prominent one out of all the factors causing a crypto bull run.
How Long Does A Crypto Bull Run Last?
You may wonder how long is crypto bull run? Although the answer to this question is subjected to several factors, we can have a rough number for some guidance. A study by Rekt Capital claims that a typical crypto bull run lasts about 546 days.
But as already mentioned, this number is just a rough approximation. So, you are better off relying on news and trends than this number.
Previous Crypto Bull Runs
Bull runs are nothing new to the world of crypto. There have been a few of them in the past who have changed the entire complexion of cryptocurrency. Let’s take a look at each of them.
- 2011-2012 Ups and Downs
If we talk about previous bull runs, bitcoin entered its first mini bull run in April 2011 and broke through the $1 mark. And by June, the price peaked between $29 and $32.
The cost of Bitcoin faced fluctuations in 2012 before the first Bitcoin halving in the same year. This halving started another bull run and the currency’s cost slightly increased from $11 to $12. That wasn’t significant, though.
- The Miraculous 2017
The consequent halving in 2016 urged the most remarkable bull run in Bitcoin history as the price increased from $100 to $900, but it faced minor fluctuations. In January 2017, Bitcoin crossed $1000 for the first time.
But it was just the start of the most extraordinary bull run in Bitcoin history. The price that was $1000 at the start of 2021, doubled in the month of May. At this point, many thought that Bitcoin was not going any higher.
But, record books were rewritten when Bitcoin went on to hit the $19,000 mark in December 2017. That means an increment of $17000 in only 7 months with an 850% return. Oh my word, my word, that was some breathtaking development. All this excitement ended along with this bull run at the start of 2018.
- The Money Doubling 2021
In 2021, another crypto bull run arrived as an aftershock of COVID-19 lockdown and the economic crisis. Amazingly, Bitcoin peaked from $30,000 to directly $68,000 in 2021, a new sky-high record. This bull Run lasted for a year and ended in 202 as the price dropped down to $35,000 due to many countries banning crypto.
Thus, if we see the future predictions, they are extremely positive as the cryptocurrency market has matured. More organizations are now well aware of the positive aspects and implications of blockchain technology and cryptocurrencies in today’s world.
What Makes A Crypto Bull Run End?
You must have heard the proverb: “Every rise has a fall.” This quote applies to crypto bull run as well. But let’s see what factors bring its end and how you can have an educated guess about it.
First of all, you need to know that ups and downs keep coming even during a bull run. So, you may see a decline in the value of a coin during that period and start reckoning it as the end of a bull run. Be careful, you may be wrong, and the currency rate might start to go upward again.
So, the simplest explanation to the end of a bull run is the loss of investor’s confidence in the coin. When investors start losing faith in the coin, demand decreases, and prices begin to roll down the hill.
Therefore, if you hear negative feedback about a cryptocurrency from the majority of the traders, it might be a hint of the end of the bull run period. And this could be the right time to withdraw your assets.
Will Crypto Have Another Bull Run?
Before investing in Bitcoin, everybody looks at how the crypto market is behaving. There are many advances, counting the forthcoming regulations. And when bull run market conditions start, the Bitcoin price will start to surge, and it will explode.
The crypto investors are eagerly waiting for the Bitcoin bull run, especially the ones who have invested when the coin is above $55k.
The major crypto bull market started in 2021, but it has some occasional dips and crashes. The price momentum of Bitcoin remained high all the way through 2021 without showing any setback pattern that likely represents a bearish market position. Most likely, the bull market is going to dominate in 2022 also.
Well, the investors might see the occasional price declines, but if we consider the inclusive market sentiment, it’s gonna remain high and positive.
Have you ever pondered what CNBC says about it? Well, according to them, a positive outward price trend in Bitcoin price is extended, and there is more chance of rising than the downfall.
The halving process comes in this regard. The miners on the cryptocurrency network are running on powerful and highly specialized computers capable of solving complex mathematical issues to make the Bitcoin transactions valid. The outcome of this is; miners get rewarded in terms of Bitcoins.
That halving process is written into the underlying code of Bitcoin, and it cuts the reward in half that the minors are getting for validating transactions on the Bitcoin’s network. It basically arrives every four years.
The last mining happened around 2021, and Bitcoin hit the highest record. Now the next halving is expected to occur in 2025 or 2026, which will very likely bring another bull run.
- Why does crypto bull run after every 4 years?
The reason behind this 4-year interval is crypto halving. Mining difficulty is doubled after every 4 years, resulting in a crypto bull run.
- How Bear Market relates to crypto bull run?
Crypto turns to bull market during the bull run period. But at the end of a bull run, it turns into a bear market which means a constantly falling market and price.
- Is the price always rising in a bull run?
No, there can be small declines in prices even during a bull run. However, they are not momentous.
The Bottom Line
Winding things up, the crypto market is all about ups and downs. But the investors are always keen to find that “up period.” This up period is what we call a bull run, and it provides an extraordinary opportunity for investors to get consistent gains in the crypto market.
In this article, we have told you about the back end mechanism, the last crypto bull run, how long did the 2017 crypto bull run lasted, and its future potential. That’s all, and we hope that this guide helps you earn great profit.