Signs That We are in an Early Bull Cycle
As the cryptocurrency market approaches the next bull run, there are various indicators suggesting that we're still in the early stages of the cycle. This article aims to shed light on these indicators and provide an outlook on the potential growth the market could see going forward.
Google Search Volume and Coinbase Download Activity
The current market scenario suggests that the Google search volume and Coinbase download activity haven't witnessed significant spikes yet, indicating that the public's interest and involvement in the market haven't reached their peak. This adds credence to the claim that we're only at the start of the bull cycle.
Bitcoin Supply Halving
Despite being halfway through its supply halving cycle, Bitcoin has already touched a value of $44k. This implies that the potential impact of supply reduction isn't fully accounted for and there's scope for even more growth for Bitcoin and other cryptocurrencies.
Monetary Policy and Speculative Growth
Policy changes such as rate cuts by the Federal Reserve in summer 2024, following a significant tightening of monetary policy, might incite speculative growth in the crypto market, with investors scouting for assets with high yield.
Gold's All-Time High
With gold hitting an all-time high amidst investors moving away from the US dollar, the need for a Bitcoin ETF becomes paramount to keep capital within the country. This could lead to a surge in interest and investments in cryptocurrencies as an alternative to traditional fiat currencies.
AI Transformation of Financial Markets
The financial markets are on the verge of an AI revolution. New-age AI trading and investing tools, like ChatGPT, indicate the future. These tools are likely to invite more capital into the crypto market and enhance profits.
Pending Bitcoin ETF Approval
The current anticipation around the approval of a Bitcoin spot ETF could be considered as a strong tailwind. If approved, it could draw significant institutional investment towards Bitcoin, further cementing its standing as a mature investment option.
Previous Bitcoin Dominance
The previous bull cycle saw Bitcoin dominate approximately 42% of the market, with a total cryptocurrency market cap of about $3 trillion. This time, several new factors could drastically impact the market.
Forecast
Given these factors, the article predicts an $8-10 trillion total cryptocurrency market cap with a $5-6 trillion altcoin market cap during the current bull cycle.
Conclusion
While these predictions may seem ambitious, the previous cycles have seen similar projections. Considering the perfect storm brewing for cryptocurrencies, which includes potential Bitcoin ETF approval, AI-infused market transformations, and changes in monetary policy, the market still holds significant potential. These signals suggest that we're just at the beginning of this bull cycle.
