Bitcoin's 2024 Halving Expected to Spark Bull Run

Crypto enthusiasts are well-versed in the volatility of cryptocurrencies, having witnessed dramatic falls and rises since their inception. Seasoned investors have learned to capitalize on phenomena like bull runs, which tend to provide increased profit if they know how to adapt their strategies to the period. Bitcoin, the oldest and largest cryptocurrency by market cap, has experienced several bull runs, typically occurring every four years after halvings when miner rewards are cut in half. Historically, bull runs peak between 12 and 18 months after a halving, with the last halving taking place in April 2024. This event is expected to ignite a bull run at the end of the year, potentially prolonging into 2025.

Ask Aime: "Is the crypto market ready for another bull run after the upcoming halving?"

The crypto sector has gone through several dramatic bull markets, with Bitcoin and Ethereum featuring the greatest spikes in price. One of Bitcoin’s most memorable bull runs was in 2013, when its value increased from $100 to $1000 due to growing mainstream interest. The next significant bull run occurred in 2017, reaching $20,000 before entering a bear phase. The May 2020 halving triggered another large bull run from the end of 2020 until the first half of 2021, with Bitcoin’s value spiking from $5000 to $60,000. This period was followed by a bear market that took the price back to under $20,000. Bitcoin enthusiasts are optimistic and predict that the 2024 halving will spark a new bull run, potentially leading to a price spike that could surpass previous records.

Bull markets, regardless of the sector, are characterized by increases in assets’ prices. Initially used to describe the phenomenon in the stock market, the term has also been applied to the crypto sector to delineate market phases. During a bull run in a traditional market, asset prices usually increase by at least 20% from their recent lows and maintain this level for a prolonged period. The period is also marked by investor optimism, confidence, low unemployment, and economic recovery, making it relatively easy to identify when a bull period starts. However, the duration of such periods can vary widely due to diverse triggering factors.

The crypto market functions differently due to its high volatility and youth, lacking a comprehensive history to identify patterns. During a bull phase, it can experience rapid price increases, varying from 20% to over 50% in less than a couple of months. The duration of a bull run in the crypto market can also differ, influenced by factors such as technological advancements, adoption rates, market sentiment, and regulatory news. Understanding these dynamics is crucial for investors navigating the crypto market.

Navigating a bull market while investing in Bitcoin can be challenging, but a mix of market dynamics research, discipline, and the adoption of proper strategies can be helpful. One of the most popular strategies is "buy and hold," which involves purchasing Bitcoin during bear markets when prices are lower and holding it until the market bounces back. This strategy is best used with crypto assets like Bitcoin and Ethereum, which have strong fundamentals. Another strategy is momentum trading, which capitalizes on the idea that crypto assets stay in motion during the bull run, allowing investors to gain a return on their investment swiftly. Swing trading leverages the market’s volatility by making gains from short-term price fluctuations, while scalping involves executing multiple trades within a single day to accumulate profits from small gains. These strategies can be highly profitable during bull markets, especially when Bitcoin has increased liquidity.