Here’s why this Bitcoin bull market is different from others

Bitcoin investors know very well that the crypto space is filled with massive volatility, which sometimes can lead to a positive outcome, and 2024 keeps reinforcing this narrative. Many events in the crypto landscape have improved the market sentiment surrounding crypto assets, such as the approval of spot Bitcoin ETFs in January and that of a spot Ether ETF in May.

Price levels in the crypto landscape have experienced highs that haven’t happened since the 2021 peaks, with trading volumes crashing crypto platforms’ services. Given these aspects, it’s not surprising that investors begin learning how and where to buy Bitcoin, believing these are all signs of a bull market. And while prices have not exceeded previous all-time highs, it’s worth noting that every bull market is unique – and this one is particularly different from those in the past. Let’s get into more detail about the trends characterizing the crypto market in 2024 and what it means for investors.

Price increases are tied to the heightened institutional interest

One of the reasons why prices increase considerably in a particular moment is the improved interest of retail or individual investors – and this applies to any asset, not just to cryptocurrencies. The approval of spot Bitcoin ETFs has resulted in a growing appetite for Bitcoin, as more investors see them as a viable method to purchase the asset without exposing themselves to major risks.

Spot ETF inflows have, in fact, exceeded the number of bitcoins mined by over ten times recently, which is a clear indicator of the strong institutional demand. Moreover, there are around 80% of Bitcoin’s total supply hasn’t moved in the last year and a half, creating an increased demand for the crypto asset and enabling a limited new supply.

Bitcoin is now a more viable option for retirement funds

Besides the increased institutional interest, there’s another significant reason that has led to the rise in Bitcoin price levels. Spot ETF products have the potential to be purchased by retirement funds – which was a complicated process before. This is because most retirement options included a self-directed IRA, which most mainstream investors weren’t familiar with.

However, the legitimacy and approval of ETF products seem to have changed that, and it’s only a matter of time until retirement funds recommend them to clients. As such, it wouldn’t be surprising to see many opportunities arising in this area, representing a new milestone for Bitcoin and contributing to the further growth of the crypto asset market.

Regulatory clarity is enabling more consistent buying of Bitcoin and other crypto assets

The regulatory framework around cryptocurrencies has always been an issue, impeding mainstream adoption. However, now that the rules are getting more explicit, it’s worth noting their role in encouraging increased buying of Bitcoin and other digital assets.

In the last year, there’s been a visible movement in addressing the obstacles that hinder the process of consistent Bitcoin investing. The accounting ruling now makes it clear to organizations how they should manage crypto asset holdings (both on the income statement and balance), which enhances results’ comparability and transparency.

The SEC has been actively investigating fraudulent activities within the cryptocurrency landscape, helping safeguard investors. Similarly, the IRS has put effort into clarifying specific taxation points, enabling investors to come forward in case past problems need to be addressed. All these changes are notable because they make cryptocurrencies visibly more appealing and provide incredible benefits for firms that want to invest.

Previous Bitcoin halving signaled a potential bull market

Bitcoin’s recent exponential surges kind of came like a shock to everyone in the crypto space ( particularly to those skeptical about the asset). It’s no secret that the leading crypto has gone through a challenging time during the crypto winter, and investors slowly started to lose their confidence at that time. So, no one expected the asset to come back even stronger than before ( this shows that Bitcoin is such a resilient asset, making it even more valuable and trustworthy).

This spectacular ascent, along with the last Bitcoin halving that marked April, are legitimate reasons to believe in the potential of the asset to shine bright this year, bringing massive gains to investors. Simply put, the halving event, which takes place every four years, is designed to reduce the rate of the newly mined BTC, contributing to the scarcity of the asset. From a historical perspective, the halving event has resulted in a market resurgence, and considering the trends discussed above, the pattern’s rehearsal shouldn’t come as a shocker this year.

Investors should take note of all these aspects and prepare for what may come by planning strategically. Obviously, risk mitigation should still hold priority no matter how the market looks like, because the crypto landscape is uncertain by nature. If investors keep an eye on the trends, it will be easier to adapt to the market.

2024 is Bitcoin’s year

The Bitcoin bull run is an exciting time for crypto investors, allowing them to grow their wealth considerably. As highlighted in this blog, many catalysts could lead to a bull market, one of them being the growing institutional interest in the digital asset. This has led the price to jump to the previous $73K mark, and even if it’s now struggling to reassert the $70K level, experts’ and investors’ expectations are that it will triumph again at some point in the foreseeable future. Since major companies are now investing in Bitcoin, this makes the crypto asset more reliable in the eyes of investors who might feel hesitant about it. As a result, the prices could go up significantly because of the rising demand and the limited supply that couldn’t enable everyone to hold Bitcoin. So, there’s a valid reason to be enthusiastic and hopeful about the future of Bitcoin.

The bottom line

There’s a reason why Bitcoin has managed to remain the top cryptocurrency in the world, as it is offering investors the opportunity to rely on a decentralized system that’s facilitating transactions – and its exponential growth from these past months is a testament to its massive potential. Bitcoin has not only emerged as a store of value, but many also see it as a powerful hedge against economic uncertainty. And with all the major forces contributing to its further growth, 2024 clearly looks like a productive year for Bitcoin.