For Bitcoin investors and traders, 2022 hasn’t brought many reasons to celebrate. The asset lost almost 65% of its value due to major events impacting the financial markets. However, it is now entering a new period that analysts expect to be positive for the asset. According to the analytics tool Glassnode, Bitcoin sees increased demand as almost $17.8 billion was poured into it when its price hovered around $30.200. At the moment, it is struggling to get back to that level. But analysts are confident that it will surpass that limit and provide notable returns in the future, even though a specific timeline for the next bull run’s inception is impossible to determine.
The leading digital coin is still trading at a budget-friendly price, so if you want to add it to your investment portfolio, now might be the time to buy Bitcoin with debit card or any other suitable payment venture. Its upcoming halving and historic performance are great starting points for gaining a sense of where Bitcoin is headed from now on.
Bitcoin’s upcoming halving may indicate another bull run
As cryptocurrency experts believe, Bitcoin is set to escalate to that price. If you want to cash in on the incoming bull run, now might be the time to turn to BTC purchase via MoonPay – just before prices clamber. The cryptocurrency community and investors alike highly await Bitcoin’s halvings, as they are historically linked to price upturns, as past performances prove. For those just tuning in to cryptocurrency, or those who have recently made a BTC purchase via MoonPay, an attempt to understand all the excitement surrounding the phenomenon should start with grasping what it involves and the implications of the previous Bitcoin halvings in the cryptocurrency market.
Bitcoin’s creator, Satoshi Nakamoto, established a coin creation limit to develop a digital currency resistant to inflation. This has come to rank among the most important aspects of the flagship coin and inspired other developers to take a similar approach, with Binance BNB providing a good example in this regard. The event is regarded as a turning point for the asset, and its declining inflation rate serves as a reminder of its rarity.
Bitcoin halving means cutting the mining reward by half, and so far, Bitcoin has experienced three such reductions, all of which positively influenced the asset’s value. The coin’s price was hovering around $12 before the first halving and grew to an all-time high of $1,000 in the year. The second event occurred on the ninth of July in 2016 and catapulted the price to over $19.000 by the end of 2017, though it witnessed slumps before the halving. Bitcoin’s price was also in a bad spot around the previous halving, just to grow to a new record of $69,000 in months. As such, the fact that Bitcoin is struggling to redeem its $30.000 value is nothing out of the norm. History shows that similar trends are only normal in the months before halvings and that recoveries are the normal course of action after the mining awards are cut in half.
If history repeats, 2024 may see the emergence of the new bull market
Analyzing past performances and trends is an excellent way to understand better how crypto trajectories move and why many assume Bitcoin is set for monumental gains in the following months. So far, the leading digital coin has gone through three significant bull markets, with the first one occurring in 2013 and sending the token to $1.000 for the first time since its inception. After culminating at approximately $1,150 in the last month of the year, the price followed a downward trajectory and almost lost around 85% of its value. The price decline only represented an opportunity for future-oriented investors to make profits. Those who bought the dip were consequently rewarded when prices began to rise, starting in the second half of 2016. Furthermore, investors who kept their holdings intact rejoiced over much more significant gains as the rally started to pick up steam in 2017 and drove the asset’s price to under $20,000 by the end of the year. Fascinatingly, four years have passed between the highest points in the Bitcoin 2013 and 2017 markets.
The third huge Bitcoin rally occurred in 2021 and showed the strongest performance in November when the asset was valued at $68,770. So far, this represents the asset’s all-time high, and analysts are positive that similar regains may be on the verge for Bitcoin in the upcoming years. As the normal course of action, other cryptocurrencies will also be brought up when Bitcoin price rises.
The latest price improvements will encourage increased news-based trading
The price of Bitcoin and any other cryptocurrency suffer fluctuations depending on various factors, like regulatory shifts and their integration with other technologies. Regardless, among the highly-influential determining aspects is the media’s portrayal of them. Press, social media, forums, and influencers have tremendous power in portraying the assets to the masses. And the most recent media coverage of Bitcoin is favorable. The flattering picture means that the token may continue to rise in price and reach the $32.000 level for the first time since May of this year. As cryptocurrency experts believe, Bitcoin is set to escalate to that price. If you want to cash in on the incoming bull run, now might be the time to turn your cash to Bitcoin – just before prices clamber.
Also, supposing you’ll rely on the media’s coverage of Bitcoin to determine your next moves. You’ll need to closely monitor the news and any current or upcoming events that may provide a preview of the asset’s performance in the future. Your trading decisions will be based on how you predict the market will respond to the various factors affecting the coin’s value.
As a result of the boosted demand that’s been registered on cryptocurrency exchanges these days, the price of the flagship digital coin may rise to new records, and the options market will become more active.
Final take
The cryptocurrency community expects a new Bitcoin bull run, which has been eagerly awaited after what experts deem one of the harshest cryptocurrency winters in history. While possible timelines have been put forth, evaluating a specific date is impossible, meaning that investors should quickly stock up on Bitcoin before it explodes. However, despite Bitcoin’s reputation as the safest asset among many other risky ones, it remains an investment subjected to erratic changes. Traders must use common sense to safeguard their portfolios from losses during this new phase.
