Five Key Catalysts That Could Trigger a Bitcoin Bull Run: Elections, Rate Cuts, Historical Patterns and More
The post Five Key Catalysts That Could Trigger a Bitcoin Bull Run: Elections, Rate Cuts, Historical Patterns and More appeared first on Coinpedia Fintech News
When will Bitcoin go up? When will the market start moving instead of just chopping around? Analyst Crypto Banter decided to put an end to these questions and revealed five market catalysts that could send Bitcoin back into a major bull run.
Catalyst One:
The first catalyst is the upcoming election. While elections often bring volatility, they also have the potential to impact the market. Donald Trump is a strong supporter of crypto and wants to make the U.S. a global leader in space, while Kamala Harris has recently started to show interest in crypto, possibly in response to Trump. The outcome of the election could greatly influence the future of the crypto market.
Catalyst Two:
The second catalyst is the M2 money supply, which includes cash, checking deposits, and other easily accessible funds. As M2 has reached new all-time highs recently, more money is available in the economy, which can lead to increased spending on risk assets like Bitcoin. Historically, Bitcoin has risen in value after M2 money supply peaks. With M2 hitting an all-time high in January 2024 and crypto starting to move in response, it’s expected that as more liquidity enters the market, it will likely drive further gains in Bitcoin and other assets.
Catalyst Three:
The third catalyst is Bitcoin’s halving cycles. Historically, Bitcoin’s price has surged significantly after each halving. For example, in 2012, it went up 8,800% a year later, in 2016 it rose 2,185%, and in 2020 it increased by 548%. These gains didn’t happen immediately but followed periods of consolidation and price dips. Currently, Bitcoin is in a long consolidation phase, similar to previous cycles, suggesting that significant price increases might follow.
Catalyst Four:
The fourth catalyst is the rise of Bitcoin and Ethereum ETFs. This year, $19.3 billion in Bitcoin has been bought through US ETFs, showing strong interest from major asset managers. The large holdings of these ETFs are nearly on par with Bitcoin’s creator, Satoshi Nakamoto. The success of these ETFs suggests that more crypto ETFs could be approved soon, making it easier for institutions to invest in cryptocurrencies.
Catalyst Five:
The fifth catalyst is the expectation of interest rate cuts. When rates go down, borrowing money becomes cheaper, which can lead to more investments in riskier assets like Bitcoin. Lower rates generally boost markets, as people shift their money from safer investments to assets like Bitcoin.