But no bull market phase can last forever, and a lot of new investors and wondering how long this simple cycle will last. Based on historical data and new developments in the crypto market, we provide a list of the main factors that are associated with Bitcoin's bull runs and their length.
The main factors
The key factors associated with the bull cycle are the Bitcoin halving that happened in 2020, on top of the ratio of supply and demand, and promotion of BTC investment by famous investors as well as institutional investors.
First and foremost, when you look at the historical data, you will see that after each halving, there is a significant bull market phase. One example is the notable bull market phase in 2017 when Bitcoin for the first time has surpassed $19,000 by the end of 2017. One year prior to that, there was a halving. So, this pattern is expected for most of the users because it diminishes the number of new BTC that are produced in the network.
Therefore, the supply is declining with each halving. In addition, the demand is rising; especially as we said, there is a huge interest regarding the cryptocurrencies from institutional investors as well as celebrities. In other words, in 2020, a lot of demand for BTC came from these investors, and subsequently, the demand was increasing not only faster than supply but, at the same time, it was also greater than the available pool of BTC.
Another reason why this bull cycle lasts longer than the other is the availability of online exchange platforms that feature high-end technology. To give an example, on Bitcoin Billionaire members can earn up to 70% of profits on a daily basis thanks to its state-of-the-art Artificial Intelligence technology. Moreover, this is an exceptionally good option for crypto newbies because it includes a detailed trading guide that will help you learn about crypto trading.
Typically, a bull run of Bitcoin can last from a few months to years and they last longer than bear market cycles. The bear market phases are marked by low volatility and more frequent. When it comes to Bitcoin, there is a cyclical nature and a pattern regarding each bull cycle that happens after a halving. How long it would last again depends on the ratio of the supply and demand, based on the above-mentioned factors.
A lot of predictions regarding the Bitcoin rally are quite positive. Bitcoin supporters believe that the price will hit $100,000 by the end of 2021, while others estimate a higher price of over $250,000 by July. Further, a lot of people expect the price to break $10 million by 2050.
It's very likely that this bull run will continue well into 2022 (experts predict it will last between another 9-22 months), although no one can know for sure, we see a lot of existing holders, as well as new investors, are treating Bitcoin as a long-term investment.
Actually, most new organizations and investors want to obtain BTC because they consider it a good store of value. So, when Bitcoin enters a bear market phase, its value will still probably be quite high, and according to the historical data, the price of Bitcoin never falls back to the same price after a halving. Otherwise, every four years, it is expected for Bitcoin again to enter a bull cycle or after a halving. The next halving is expected to happen in 2024.