The crypto market has experienced a tumultuous period between 2020 and 2021, with Bitcoin‘s price enduring a rollercoaster ride since its peak. The bear market has been exhausting, but bull seasons are equally dreamlike and fleeting.
Analysts have compared the upcoming 2024 to the early 2021, predicting a similar surge in the crypto market. Antoni Trenchev from the crypto lending firm Nexo suggests that the current price movement could be the last major bull run before cryptocurrencies enter the mainstream, reminiscent of the 2020-2021 period.
The previous rally, which occurred just months before Bitcoin’s halving in April 2020, was more than a seasonal price increase. It was a precursor to unprecedented fluctuations in crypto valuations. With the next Bitcoin halving scheduled for April 2024, there is an air of optimism for another surge, with the market seemingly warming up for a ‘Santa Claus Rally’.
Despite similarities in market patterns, current conditions differ fundamentally, especially with the potential approval of ETFs. Jupiter Zheng of HashKey Capital highlights the rapid expansion of the Bitcoin ecosystem, including the introduction of new layer-2 solutions and inscriptions, as well as the Federal Reserve’s shift from a hawkish to a dovish stance, positively impacting risky assets.
This year is expected to be filled with exceptionally good news, suggesting that the dreamlike crypto bull run might just be beginning.