What Sets This Bitcoin Bull Market Apart from Others?

All markets fluctuate, resulting in cycles of highs and lows. To far, the cryptocurrency market—which includes Bitcoin in particular—has seen three such cycles. But this fourth cycle is different, as shown by Bitcoin’s extraordinary rise to $74,000, a new record high.

Past Bull Markets
The first significant bull market took place in 2013, when Bitcoin’s value surged by about 6,000 percent, from $12.5 at the beginning of the year to $754 at the end. The rising demand for Bitcoin in China and its growing popularity contributed to this spike.

Bitcoin prices then fell when China imposed a general prohibition on trading cryptocurrencies. But in 2017, Bitcoin peaked at over $20,000, signaling the start of the second significant bull market. Many bitcoin exchanges prospered at this time.

Technology breakthroughs and more awareness drove the rise of Bitcoin in 2021. Its rise was further aided by the creation of user-friendly platforms, which ultimately led to Bitcoin hitting the $65,000 milestone.

After weathering a protracted down market, Bitcoin has once again crossed the $74,000 level as of 2024.

What Is Different About This Bull Market?
Increasing Institutional Interest: As a result of recent regulatory changes, institutional actors are now showing a great deal of interest in Bitcoin. When the SEC approved Bitcoin spot ETFs in January, institutional interest skyrocketed. Eleven of these ETFs are now accumulating around 10 times the total quantity of Bitcoin that is mined, indicating a growing market and more trading activity.

In addition, there has been a notable increase in the quantity of addresses with huge reserves of Bitcoin, since BlackRock’s Bitcoin ETF is accumulating coins at a faster pace than even well-established companies such as MicroStrategy. Institutional fervor was further underscored last week by the extraordinary trading volumes of around 100 million shares in BlackRock’s Bitcoin funds, which established a new daily record.

Changing Regulations: Over the last year, regulations pertaining to cryptocurrencies have become more and more clear globally. This tendency is reflected in initiatives like India’s inclusion of cryptocurrencies under PML rules and the Markets in Crypto Assets (MiCA) initiative, which is slated to go into effect in June 2023.

Since October of last year, companies who want to sell cryptocurrency assets to regular customers in the UK have to get permission or register with the Financial Conduct Authority (FCA). The credibility of the business has also been strengthened by the USA’s introduction of spot Bitcoin ETFs, drawing in more institutional and individual investors.

The Bitcoin Halving is coming up in April, and both institutional and retail participants will be keeping a close eye on this important event. In the past, price increases caused by the Bitcoin halving have led to similar patterns in other cryptocurrencies. As a result, excitement over this upcoming event is causing the bitcoin market to see a surge in activity and investment.

Increasing Awareness of Crypto: The market for cryptocurrencies has gained legitimacy thanks to the growing interest of reputable financial institutions and institutional investors. There are several educational programs available that try to explain blockchain technology and cryptocurrency. The legal picture is becoming more understandable for companies and investors as regulatory frameworks around cryptocurrency change. Elucidation regarding tax implications, licensing prerequisites, and safeguards for investors fosters trust and promotes wider involvement in bitcoin exchanges.

In summary
The cryptocurrency industry is now experiencing a bull market, driven mostly by increased institutional interest, changing regulatory frameworks, the possibility of a Bitcoin halving event in the near future, and rising public awareness. Together, these elements give rise to a special and maybe revolutionary moment in the cyclical dynamics of the market.