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Despite a slow start, 2023 witnessed an unforeseen surge in the crypto market, defying initial expectations. Bitcoin, Ethereum, Solana, and various altcoins experienced a notable upswing, catching many market participants off guard.
The crypto market, characterized by heightened volatility, seems to be gearing up for a significant bull run this year.
Market Growth and Increased Capitalization
The global crypto market cap has soared to $1.69 trillion, marking an impressive 112% increase in the past 12 months.
According to Coin Desk, this surge aligns with substantial leaps of 154% and 93% in Bitcoin and Ether prices, respectively. Altcoins like Solana and Avalanche (AVAX) have outperformed, witnessing a remarkable 880% and 250% growth, respectively.
Factors Fueling the Crypto Spike
Driving this surge are mounting expectations surrounding the approval of a spot Bitcoin exchange-traded fund (ETF), the successful Shanghai upgrade for the Ethereum network, and the imminent Bitcoin halving event scheduled in less than 180 days.
Noteworthy Bitcoin stakeholders express confidence in BTC by increasing their holdings. On-chain data from Glassnode reveals a trend reversal, with long-term holders maintaining a bullish stance on the potential for a Bitcoin bull run, leading them to augment their holdings consistently.
According to Business Insider, Bitcoin's price trends often depict cyclical patterns, with analysts drawing parallels between the current trajectory and historical patterns. This suggests a potential bullish cycle similar to 2013 and 2017.
Anticipating the Next Bull Run
Historically, Bitcoin's bull runs tend to follow four-year cycles, often triggered by events such as the supply reward halving, reducing the rate at which new BTC is created and earned by miners.
The next halving event is anticipated in the spring of 2024, with bull runs traditionally commencing months before the event and extending until Bitcoin reaches a new all-time high. As the countdown to the halving continues, optimism prevails regarding a robust crypto market in the near future.
Photo: Austin Distel/Unsplash
