When Bitcoin crossed the record-breaking high of the $40,000 mark, people were reaping profits, and it is just a matter of time before the dip starts to occur. When a crash had occurred in 2017, the internet was full of speculations about Bitcoin price; because of this, cryptocurrencies have lost far from the moving averages. By the end of 2017, Bitcoin had gone up to $20,000 and went further. As this year started, Bitcoin price is touching new heights every day. Also, some experts & investors predicted that the value of Bitcoin might reach up to $100,000 in the near future. However, Bitcoin’s price roller-coaster ride continues but by any chance, if you plan to invest in Bitcoin. The Bitcoin Pro is an automated trading platform for crypto trading that trades on behalf of its users & uses an intelligent trading algorithm that scans the crypto market. To know more about this, you can check the Bitcoin Pro Review. However, according to recent events, the price of Bitcoin has moved towards $40,000 and this rise in bitcoin has raised a question – whether the Bitcoin bull run is continuing or is it over?
What is a Bitcoin Bull Run?
- For every three years, there comes a period called the “Bitcoin Bull Run.” Experts with the help of indicators, predict the Bitcoin bull run trends, and it cannot be predicted when it will begin or when it will end.
- The Bitcoin bull run’s history shows that a bull run will shortly occur after the halving event. Every four years, the halving event occurs or after every 210,000 blocks are mined. Miners verify the transactions and add blocks to the blockchain. For each block added, the miner gets the reward in Bitcoin, and after every halving event, the reward is cut in half for the miners.
- Mining of bitcoins is an expensive affair, when the halving occurs, the mining profits are reduced; It can reduce the miner’s profit for a few months. Based on this, the Bitcoin price needs to be increased where it should be profitable for the miners for mining Bitcoin, otherwise, it would crash.
- The total number of bitcoins that can be mined is 21 million, and because of this hard cap, the supply is scarce, the number of bitcoins that are put into circulation is reduced. Bitcoin is a deflationary asset, which implies that when the value of the dollar goes down, the value of Bitcoin goes up.
Is Bull Run of Bitcoin Over?
- Considering the recent events, Bitcoin is in the middle of a bull run by crossing its previous all-time high, which took place in December 2017. Bitcoin value increased to $20,000 in November, and it continued to rise from December through January, finally hitting at $41,500 on January 8th.
- After analyzing the cryptocurrency market, experts opined that this bull run is overdue for the next correction after considering the steep increase in price. The Dow theory states that the market prices are about ebbs and flows since we have a good flow for quite some time, eventually, we can anticipate the time for ebbs, which we may expect anytime.
- They analyze that the bull run is different this time, and this trend is inspired by institutional money and the lower number of bitcoins to mine. After the halving event, the rewards have also halved, which has led to increasing bitcoin prices. This shows the bull run is not yet over.
What Is Pushing Bitcoin’s Price Up So Quickly?
- Several people are now showing interest in purchasing cryptocurrencies as cryptocurrency prices are increasing every day, as it is booming now. Along with Bitcoin, Ethereum and Ripple have also seen a surge in prices which continues to increase.
- A major reason for Bitcoin’s rise in price is the inflation of USD. Although the inflation rate is 2% every year, the recent spending has shown a greater level of inflation, and there is a decrease in the dollar’s purchasing power, which has led to an increase in purchasing Bitcoins.
- As experts state that the cryptocurrency bull market lasts 3 years, this bull run started about 9 months ago, and it might continue to increase. They foresee the price of Bitcoin going beyond $100,000 in the near future.
What’s Unique About the Bitcoin Bull Run 2021?
- The investors are experiencing more excitement this time than earlier Bitcoin bull run history. Experts predict that the Bitcoin bull run in 2021 can increase the price of Bitcoin from $50,000 to $400,000.
- Over the recent months, the Bitcoin price went down to $20,000, where there has been a 10 to 15% price drop, and after that, there has been a steady increase in its price. This brought a lot of speculation from several large publicly-traded companies, institutional investors, and companies that started to transfer their liquid assets to Bitcoin.
- MicroStrategy, the largest publicly-traded business intelligence company, purchased more than 70,000 bitcoins with holdings worth $1.6 billion. Grayscale, the United States largest hedge funds company, as of November holds more than 2.6 % of the bitcoins circulating in supply.
- Due to the increase in the price of bitcoins, several people have shown interest in buying bitcoins. Bitcoin’s bull run has made several people looking for ways to protect their wealth in an economic crisis. This made them move towards bitcoin.
Variations in Bitcoin Price
- Bitcoin price reached around $40,000 for the first time in its history this January, and it has seen it move towards an upward trend, with a steady increase. Due to this increase, there is a huge demand from retail, institutional and corporate investors to make quick gains from it.
- The leading cryptocurrency Bitcoin has reached $40,402.46 and came down to $39,100 on January 2nd; it crossed 20,000 in December 2020 and crossed up to $30,000 for the first time in January.
- Ethereum, the second-largest coin by market capitalization, and Ripple, the fourth-largest cryptocurrency, gained $1,231 and 0.32 US cents, respectively. Both these currencies have increased their value along with Bitcoin.
To summarise, we can say that the increase in demand from the corporate, institutional, and retail investors has powered the bitcoins price this year, which has benefited several investors. Moreover, the infrastructure that has been used to build Bitcoin and other cryptocurrencies have shown remarkable development over the recent years by making it easier for retail investors to invest in the cryptocurrencies long-term. As the Bitcoin bull run moves further, investors can expect huge windfall gains if they are holding bitcoins.