A Million-Dollar Question: What Will Fuel the Next Crypto Bull Market?

Many cryptocurrency holders and traders are already gearing up for the next bullish cycle, even though the current situation on the market still hangs in the balance. There are many speculations regarding this matter, and we’d like to throw in our two cents, or should we say two sats. 

Table of contents:

1. As with everything in life, the crypto market adheres to the rule of cyclicity
2. National governments are becoming more lenient toward crypto
3. Institutions will keep playing the first fiddle
4. The game-changer

As with everything in life, the crypto market adheres to the rule of cyclicity 

Even a nascent cryptocurrency investor/trader knows that this market, and all other financial markets for that matter, run in cycles - bullish and bearish. In the case of the crypto market, the cycles have a four-year maturation period, and are largely dependent on the event known as Bitcoin halving, a pre-programmed 50% reduction of miners’ rewards, as well as the development of the regulatory framework in the countries that are economic powerhouses. 

Analysts argue that with Bitcoin (BTC) establishing a foothold above $20,000, the market has found its bottom, so the rally, after a certain period of consolidation, is to be expected. The consolidation is indeed required after the infamous crash of Terra (LUNA) and ongoing turmoil in the global economy. But even now, with the looming economic recession, we can detect the following factors and actors that will be the driving force behind the next ‘trip to $100K.’  

National governments are becoming more lenient toward crypto 

Last year, El Salvador made history by becoming the first country to recognize Bitcoin (BTC) as legal tender. Later, the Central African Republic (CAR) followed suit despite the fact that only 10% of its population have access to the Internet, not to mention banking services. Other countries, which can’t solve their problems by making the money printer go ‘Brrr,’ have also begun weighing this option, but they would have to put the corresponding regulations in order, just like literally any other country that’s considering crypto or central bank digital currencies (CBDCs). The clarity in this department will stimulate bullish sentiment within the crypto market. 

Institutions will keep playing the first fiddle

The first major bull market since cryptocurrencies entered the mainstream (2017) had been driven by retail investors. Its second iteration (2021) was marked by the active involvement of big financial institutions, some of which had frowned upon crypto. JP Morgan, Microstrategy, Pantera Capital, Tesla (the list can go on for quite a while), all have their skin in the game and don’t hide their intention to load up on crypto during the ongoing bearish phase. The involvement of financial institutions such as hedge funds had driven the price of Bitcoin above $60,000, and they will surely drive it above $100,000 once the next bullish cycle kicks in, because it is their vast capital that nourishes the market capitalization of BTC and top altcoins. 

The game-changer

The NFT-based blockchain games have been around since 2017 (remember CryptoKitties that clogged the Ethereum network), but this niche began booming in 2020, right around the outbreak of the COVID-19 pandemic. It introduced a new ‘play-to-earn’ model which afforded a lot of people decent income through grinding, earning NFTs, and then selling them on designated marketplaces. Before and even during the bearish phase, blockchain games Axie Infinity, Splinterlands, and Sorare have been attracting flocks of players which gave the NFT movement a whole new meaning, and it will keep on evolving and push the associated cryptocurrencies like AXS, SAND, or MANA to new price heights.