Five Potential Triggers for the Next Crypto Bull Run

What New Forces Could Drive the Next Crypto Bull Run? BeInCrypto asked some industry experts for their opinion.

2021 was a boom year for crypto markets. This was the year when crypto, blockchain and web3 took center stage. Facebook was rebranded as Meta, banks moved into the space, and NFTs were on everyone’s lips.

The 2021 crypto bull could be attributed to a number of things. Institutional adoption and acceptance of cryptocurrencies by major brands has given the sector a new sense of legitimacy. Low interest rates fueled fears of inflation during the COVID-19 pandemic. Therefore, investors turned to alternative investments such as cryptocurrencies. During the COVID-19 pandemic and the subsequent lockdown, most people spent more time online. The once-in-a-generation event also provided the perfect petri dish for crypto to gain momentum.

Since the 2022 disaster, the industry has been looking for the next source of growth. BeInCrypto asked some experts what could be the next sustained market rally.

bitcoin halving

Bitcoin halving occurs every four years, when the number of new bitcoin miners is cut in half. This limits the total supply to 21 million. This event is programmed into the bitcoin protocol and is designed to limit the total supply to that number. The next stop will be in or around April 2024.

“It is the Bitcoin halving expected by investors in the second half of 2023 that could be the main positive stimulus for the market, which should spur a change in the global trend,” said Gracie Chen, managing director of the cryptocurrency exchange. BitGate told BeInCrypto. “After a halving, the price of bitcoin always goes up, and other cryptocurrencies follow suit.”

protocol utility

The trend that experts predict in the upcoming crypto bull market is a shift in emphasis towards the utility of crypto protocols. This means that investors will focus more on how cryptocurrencies can be used practically in real-world situations, rather than just their speculative value.

Eric Chen, CEO and co-founder of Blockchain Protocol Injection, said, “While previous bull markets may have been driven by hype and speculation about certain tokens or projects, I believe investors are getting smarter and more discerning in their investment decisions. are being made.” An interview with BeInCrypto.

“As more people enter the crypto market and turn their attention to cryptocurrencies, there will be more emphasis on the real value that protocols are bringing to the table. Investors will be looking for protocols that are solving real-world problems. and providing tangible benefits to users,” Chen said.

volatility and inflation

Bitcoin has had several periods where it has been the best performing asset in the world. According to CoinMarketCap, BTC is already up more than 60% this year. William Zilke, chief revenue and chief marketing officer at payments service provider BitPay, told BeInCrypto that the inflation-beating performance is likely to get investors talking about crypto.

Zilke explained, “On a macroeconomic level, inflation is nowhere near its end, and with the recent Fed rate hike, investors continue to express caution.” “Bitcoin, in particular, is emerging as a hedge against inflation and growing banking uncertainty, so we are seeing an increase in its price partly because investors are seeking safety. In the conversation again as the market looks for stability. The market backdrop right now presents an opportunity for crypto to reclaim its moment at center stage amidst so much volatility.

deepin

Decentralized physical infrastructure networks, or Deepin, are networks that use blockchain and other decentralized technologies to manage physical infrastructure. This could include things like power grids or transportation systems. Instead of being in charge of a central authority, each device or node in the network can communicate and share resources directly with each other, making the infrastructure more efficient and less likely to fail.

“While the largely nascent sector is only just beginning to explore its true potential, I have seen a lot of enthusiasm for it,” Max Thake, co-founder of blockchain network Peek, told BeInCrypto. “Its ability to disrupt entrenched industries that have seen little real competition over the past few decades is earning it a lot. More and more projects seem eager to explore this. This is a welcome development because, in my opinion, real-world services and value exchange are where blockchain has real utility, not trading .jpegs. DePIN zooms in precisely on the real world, and I think their model has the best chance of real adoption that Web3 has had so far.”

User Design and Education

However, Marcus Levin, co-founder of geospatial data firm XYO, believes the industry has a lot to prove after last year. Once the dust settles and more people start trusting the sector again, it will still come down to fundamentals.

“2022 exposed holes and flaws in the crypto ecosystem that our industry has yet to work on,” Levine told BeInCrypto. “For another bull run to hold us from the storm, a restored sense of authenticity, security and stability is needed in addition to a favorable macro environment.”

“Two big hurdles still remain, user design and education. Blockchain is accessible to all, but jargon and community language make it feel overwhelming and specific to the average user. If we are to restore trust in the space And if we can focus on building infrastructure and continue weeding out bad projects that lack utility, a bull run is well within our reach.