With the crypto market still trying to recover from its last bearish phase, enthusiasts are eagerly anticipating the next bull run to make profits. In anticipation of the next potential recovery, both crypto traders and investors must understand the key factors that drive the next bull run. Staying informed about these factors will help you position yourself for maximum profit in the upcoming crypto bull run that the whole world anticipates.
What coins should I consider for the next crypto bull run?
Before we discuss the 5 factors that drive the next bull run, let’s see some coins that are likely to do very well when crypto hits the bullish market period. Here is a list of some top coins and projects you should consider before the subsequent crypto bull run:
Bitcoin: Bitcoin is the original cryptocurrency with a very high store of value.
Ethereum: Ethereum is the second-largest and most valuable cryptocurrency that offers smart contract functionalities.
XRP: This token powers a fast and inexpensive payment network.
Cardano: This blockchain has very secure and scalable smart contract solutions.
Love Hate Inu: This is a vote-to-earn meme coin that has gained popularity in recent times.
Chainlink: Chainlink is a decentralized oracle network that connects smart contracts to solid real-world data sources.
DeeLance: A decentralized online freelancing platform that seeks to change the gig economy.
Ecoterra: Ecoterra is an eco-friendly token that rewards its users for recycling, thereby saving the environment.
Tamadoge: This is a crypto game project that allows users to own pet NFTs.
RobotEra: RobotEra is a metaverse token with thrilling play-to-earn incentives.
Note that these coins are just the most likely ones to perform well during the next bull run. There are no guarantees when it comes to investing in cryptocurrency.
What are the 5 factors that drive the next bull run?
Listed below are the top 5 factors that drive the next bull run. Always be on the lookout for these factors:
1. Bitcoin halving
Experts predict the next Bitcoin halving to take place in April 2024 and this event is likely to trigger the next bull run.
In the past post-halving of BTC has always amounted to a huge bull run, taking the value of BTC to an all-time high. This was the case in the last bulls of 2017 and 2020/21. Essentially, BTC halving leads to scarcity of the token, reduces miners’ reward, reduces liquidity, and increases the price of the asset. All of these can trigger a bull run, however, bulls associated with BTC halving always come one year after the halving ends. Therefore, if history repeats itself, we should be expecting another bull run in 2025.
2. Technological advancements and innovations in crypto
If there’s constant innovation in blockchain technology, non-fungible tokens (NFTs), DeFi, and other areas related to crypto, new investors are likely to get attracted to the market, thereby driving market growth. Ongoing advancements in blockchain technology, such as energy-efficient consensus mechanisms and scalability improvements, may handle some of the constraints of existing cryptocurrencies, which would make them far more attractive and efficient for investors.
3. Massive adoption
The current bear situation faced in the crypto market was caused by the limitation placed on the crypto market by China. This situation has made experts believe that the only way to boost the relevance of the crypto market is through the massive adoption of cryptocurrency.
With the financial industry now seeking to use blockchain technology to simplify banking transactions, cryptocurrency is slowly gaining ground in every country in the world. Whenever a large wave of adoption finally sets in, there should be a bull run to serve as compensation.
4. Changes in restrictions and government policies
Positive regulatory developments, like the legalization of cryptocurrencies or any other supportive regulations about the crypto market in general, can increase market sentiment and motivate investments.
Precise and well-defined regulations regarding cryptos can give investors a sense of security and faith in the market. Since investors know what is allowed and what is not, it reduces the danger of regulatory surprises that may cause financial losses. Also, it may ease concerns about the crypto market and facilitate greater institutional and retail participation.
5. Institutional adoption and wide acceptance of cryptocurrencies by prominent brands
It is no news that many financial institutions and prominent brands are starting to invest in and embrace what the crypto market has to offer. Basically, the hospitality, iGaming (crypto gambling sites), and fast food industries are good examples of businesses that are starting to adopt cryptocurrency. If this trend continues, it can lead to higher credibility and trust in the crypto market, motivating more investors to break into the space.
How to prepare for the next crypto bull run
Using the strategies listed below will help to increase your chances of making profits in the next crypto bull run:
a. Research potential investments thoroughly
Before you start investing in any cryptocurrency, it is crucial to take time to research, study, and understand the crypto project’s fundamentals, team, goals, and potential for growth.
b. Watch out for market sentiment
You should also monitor the all-around sentiment in the crypto market as it will help you to make informed decisions during investment. You can monitor the market sentiments by staying tuned to the news, keeping an eye on expert opinions, and following market indicators.
c. Diversify your portfolio
When it comes to cryptocurrency investment or any other kind of investment, you don’t put all your eggs in one basket. It is crucial to diversify your investments across different cryptocurrencies and areas within the crypto market. Diversification is a strategy that can you manage risk and maximize profits.
d. Set clear investment goals
Before you start investing in crypto you must set out clear investment goals so that you don’t lose focus along the line. Establish your investment goals, risk tolerance, as well as the time horizon before you enter the market. Setting up a clear plan will help you make more reasonable investment decisions.
e. Always be prepared for volatility
It is no news that the crypto market is extremely volatile. So you must mentally and financially prepare yourself for sudden price fluctuations and instability. Also, you must learn to avoid panic buying or selling based on emotions.
f. Use dollar-cost averaging
Rather than trying to time the crypto market, try the dollar-cost averaging strategy by investing a fixed amount of cash at regular intervals. This method can help to minimize the effect of short-term price changes and decrease the risk of joining the market at a high point.
g. Take your profits when necessary
While it is crucial to have a long-term investment plan, don’t be scared to take gains when you attain your targets. By doing this, you lock in profits and avoid terrible losses during crypto market corrections.
Another thing you must do is analyze past crypto bull runs and bear markets to recognize patterns and trends. This may help you to better navigate the upcoming bull run.
i. Stay updated on all regulatory developments
Significant changes in regulations and government policies can greatly impact the crypto market. Keep track of these developments to figure out how they may affect your investments.
j. Consider making use of risk management tools
Use stop-loss orders, trailing stops, and other risk management tools to help protect your financial investments from sudden market downturns.
Now that we’ve listed out the 5 factors that drive the next bull run, it is up to you to read and understand them and use them to your advantage. This way, you position yourself to succeed during the next bull run phase. Lastly, don’t forget about the volatile nature of the crypto market, which means that the market is liable to be affected by numerous internal and external factors. Although the proceeds of a bull market are mouth-watering, you must still do your due research and approach the market with utmost caution.