When Is The Next Crypto Bull Run In 2023 — What Is A Bull Run

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20 Jan 2024

Today’s article will cover the topic everyone is talking about: When is the next crypto bull run? The cryptocurrency market has seen its ups and downs, with periods of growth and decline, and many are curious about what the future holds.
When Is The Next Crypto Bull Run In 2023 — What Is A Bull Run
With so many speculations and predictions floating around, it can be difficult to know what to believe. But don’t worry. We’ve gathered some of the leading experts and analyses to give you a comprehensive understanding of what to expect in the crypto market this year.
So sit back, grab a cup of coffee, and let’s dive into the world of cryptocurrency.
In 2021, Bitcoin and many other cryptocurrencies experienced a surge in popularity due to increasing institutional adoption and government regulatory attention.
Despite a flood of new projects entering the market, the cryptocurrency market saw a sudden downturn in 2022 due to some huge setbacks and events, causing many investors to wonder when the next bull market will occur.

But, First Let’s Understand What A Bull Run Is

A “bull run” or “bull market” refers to a rapid upward trend in the prices of assets or securities, such as cryptocurrencies or stocks. In the world of cryptocurrency, a bull run is no different from traditional markets and is characterized by investors’ anticipation of substantial returns from price appreciation.
During a crypto bull run, the price of cryptocurrencies often experiences significant growth. Bitcoin’s price history shows that these bull runs have occurred during halving seasons, as seen in these past examples:

2013: from $100 to $1,000
2017: from $1,000 to $19,000
2021: from $29,000 to $64,000

It’s important to note that bull runs are usually preceded by a period of consolidation, where the price of the asset stabilizes after a period of volatility. This could indicate the start of a bull market, but this has yet to be confirmed.

Factors Contributing to A Crypto Bull Run

The crypto bull market is driven by several key factors, including:

Supply and demand: Investors and traders play a major role in shaping the demand for crypto assets, which can impact the asset’s price.
Market news sentiment: Positive news, such as partnerships, announcements, new projects, and technology advancements, can generate investor interest and increase asset value.
Institutional adoption: The integration of cryptocurrencies into mainstream finance signals the growing utilization of the asset and may encourage retail users to join the trend.
Economic and political influences: Economic growth and political stability can support the adoption of cryptocurrencies and improve financial accessibility.
Scarcity of other investment options: During uncertain times, low-risk, low-return assets lose popularity in favor of high-risk, high-return assets like crypto. This increased demand drives up crypto prices.
Inflation and interest rates: High-interest rates make it easier for investors with spare cash to pursue speculative, high-liquidity assets like cryptocurrencies.

Many other factors may contribute to a crypto bull market. Ultimately, a combination of these factors determines whether the market is in a bull or bear phase. As the crypto industry is still relatively new, it can be difficult to predict precisely when a bull market will occur.

But, How Often Do Crypto Bull Runs Happen?

Due to the volatility of the crypto market, bull or bear markets can occur at any time. The frequency of bull runs may vary depending on the market, with some anticipating multiple runs while others may experience a long bear market before a reversal.
Cryptocurrency is known for its high volatility, causing prices to fluctuate rapidly. For instance, prices of Bitcoin or Ethereum during a bull run can soar unexpectedly by over 100%.
While historical performance can help make risk management strategies, it is not always a reliable indicator for predicting bull or bear markets.
The best approach is to make investment decisions based on your personal risk tolerance and goals.

So, How Long Does Crypto Bull Market Last?

The duration of a bull market in cryptocurrency can vary greatly. Some can last a short time, just a few weeks or months, while others can persist for multiple years. However, it is unlikely for a bull run to last for years without a correction.
And here are some factors impacting the length of a bull or bear market include:

Investor sentiment
Institutional participation
Fundamental developments
Political influences

Generally, a more positive outlook among investors increases the odds of a prolonged bull market. Correction periods are normal, and temporary price decreases do not necessarily signal the end of a bull market.

How to Time the Crypto Markets

Timing the cryptocurrency market is a complex task due to the market’s fluctuating and unpredictable nature. It requires constant monitoring, as the crypto market operates 24/7. But, traders and investors employ several strategies to improve their timing.

Technical Analysis: This involves evaluating an asset’s performance by analyzing market statistics such as trading volume, price performance, and liquidity. Traders use this data to identify patterns and trends to determine optimal entry and exit points for an asset, making it a helpful strategy for short and long-term investments.
Fundamentals Analysis: This method involves evaluating a project or company’s underlying potential to gain a comprehensive understanding of an asset’s growth potential and its sustainability within the industry or the broader economy. This approach focuses more on the long-term prospects of an investment.
Sentiment Analysis: Social sentiment is a significant factor that helps investors gain insight into the overall optimism about an asset.
Market Economy Analysis: Analyzing regulatory announcements, political shifts, and market-moving events, such as partnerships or technological innovations, provides information on market direction.

While no strategy guarantees 100% accuracy, a well-defined plan for entering and exiting positions and risk management is regarded as the best approach for sustainable investing.

Now Let’s See If The the Crypto Winter Is Ending?

The cryptocurrency market saw a prolonged period of decline, known as the crypto winter, from 2018 to 2020. Despite this, 2021 saw a huge pump in the value of cryptocurrencies like Bitcoin and Ethereum, with the value of one BTC reaching over $65,000 in November 2021.
However, the following year, prices crashed, trading volumes plummeted, and many high-profile companies suffered liquidity crises, resulting in their collapse, including FTX, Luna, and Genesis, among others. This crypto crash led to the extension of the crypto winter beyond its original prediction.
Despite the recent performance of BTC and ETH in January 2023, which marked a new milestone, it is still uncertain whether the prolonged downturn in the cryptocurrency market has indeed come to an end.
There is speculation that a bull run may begin, but accurate predictions are challenging in this rapidly fluctuating market.

And Here are some of the feedback from the experts:

David Marcus, co-creator of Diem and former PayPal president, predicts the crypto winter will persist until 2023.
Standard Chartered also warns that the crypto winter could continue until 2023, leading to further liquidity and bankruptcy issues.
The crypto investment manager at Grayscale Investments says that the average length of a crypto winter is four years, meaning the market may not recover until 2026.
On the other hand, UBS analysts observe that BTC and ETH futures volumes and open interest are beginning to stabilize.

So, When Exactly Will the Next Crypto Bull Run Begin?

Experts are speculating about the timing of the next crypto bull run. Although there is no definite answer, some have offered their insights and predictions. For instance:

Peter Brandt has analyzed past data and found that the previous two 10x surges in Bitcoin required an average of 33 months before another rise.
Anthony Scaramucci, the founder of SkyBridge Capital, believes that 2023 will be a year of recovery for Bitcoin and foresees it trading between $50,000 and $100,000 in two to three years.

So, Should You Invest Before a Bull Run?

Investing in cryptocurrency or other assets when undervalued is a wise choice, rather than waiting for a bull market to start. Understanding when the bottom for Bitcoin or any other crypto is reached can be challenging, but on-chain data may provide some clues.
For instance, the current market trends for Bitcoin are remarkably similar to those observed during the last two market cycles, with November 2022 marking a bottom at around $15,500. If the on-chain data is correct, it could suggest that the crypto market has already entered a bullish cycle. To confirm this, on-chain metrics can be used as indicators, such as:

Network value to transaction ratio: This measures the relationship between crypto market capitalization and the value of each transaction on the blockchain to gauge whether the digital asset is overvalued or undervalued. A high NVT ratio may imply that the asset is overvalued, while a low ratio means it is undervalued.
Blockchain daily transactions: An increase in transactions can indicate a higher demand for the coin among traders and investors.
Hash rate: A rising hash rate indicates increased demand in the market and more miners consuming the computing power needed for network security through mining.
Wallet addresses: A large number of unique wallet addresses could suggest higher adoption and usage of the crypto market.
Market value to realized value: A high MVRV ratio indicates overvaluation, while a low ratio implies undervaluation.

While on-chain data provides a more comprehensive analysis of trading activity, it alone is not enough to confirm a bull run.
Cross-referencing with market sentiment and other external factors, such as the state of the macroeconomy, can also play a significant role. If consumer price inflation and employment numbers improve, it could boost investors’ confidence in their investments and trigger a bull run.

Overall

It is important to invest in cryptocurrencies or other assets when they are undervalued rather than waiting for a bull market to start. As we explained in this article, one way to gain insight into market conditions is to analyze on-chain data.
Additionally, cross-referencing on-chain data with market sentiment and external factors such as the macroeconomy can also play a role in determining market trends.
However, the cryptocurrency market is highly unpredictable and volatile, and there are no guarantees in timing the market accurately.
Doing your research and understanding the risks, Diversifying your portfolio, and only investing what you can afford to lose is essential.

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Written by CryptoZoom

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Founder of CryptoZoom. Trading and crypto enthusiast. Focused on educating investors. Crypto, NFT, Web 3.0, Blockchain, Metaverse, DeFi, FineTech, and Finance.