Gate.io 博客 Preparing for the Surge: Three Key Trends Shaping Bitcoin's Next Bull Run

Preparing for the Surge: Three Key Trends Shaping Bitcoin's Next Bull Run

05月22日 10:44

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## [TL; DR]
An increase in institutional investment and an entry of new retail investors in <a href="/zh-tw/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> are likely to shape the next bitcoin bull run.

It is best for new crypto investors to put their funds in leading cryptocurrencies like bitcoin.

Cryptocurrencies that have spot ETFs are likely to experience strong bullish momentum in the future, depending on institutional capital injections into the ETFs.

## Introduction 
The cryptocurrency community started looking forward to the 2024 bitcoin halving event in 2022 when the sector was still in one of the longest and severest crypto winters. Many people had the hope that the next bitcoin halving event would trigger a bull run. However, the investors’ attention was later captured by the introduction of spot bitcoin ETFs which changed the crypto market dynamics.

The funds <a href="/zh-tw/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into BTC ETFs led to a strong short term bullish market that stretched from January to April. In fact, the bullish momentum declined just two weeks before the halving. Some analysts believe that profit taking by the bitcoin investors who acquired the asset during 2022 and 2023 has led to the current bearish momentum.  The scope of this article is to explore factors that may trigger and sustain the next bitcoin bull run.

## Current Cryptocurrency Market Status: When Will the Next Bull Run Start? 
What the crypto market anticipates is a continuation of the crypto bull run which began some few months ago, after the [launch of spot bitcoin ETFs in the United States in January](https://www.gate.io/blog_detail/3434/bitcoin-etf-approval-potential-catalyst-for-historic-crypto-bull-run "launch of spot bitcoin ETFs in the United States in January"). However, the current bitcoin bull run is different from the previous ones since it is driven by spot bitcoin ETF investors. The spot crypto ETFs have opened the way for traditional investors to pour their funds into the sector.

Although, currently, the market seems down, the bullish momentum will likely continue in the very near future. There are several cryptocurrencies that may explode during the next bull run. EHT is still strongly positioned to rally any time from now, especially if the United States [approves Ethereum ETFs](https://www.gate.io/blog_detail/4117/%E4%BB%A5%E5%A4%AA%E5%9D%8A%E7%8E%B0%E8%B4%A7-etf-%E6%88%96%E5%B0%86%E5%BB%B6%E8%BF%9F-%E7%89%9B%E5%B8%82%E8%A1%8C%E6%83%85%E4%BD%95%E6%97%B6%E9%87%8D%E5%90%AF "approves Ethereum ETFs"). Also, <a href="/zh-tw/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> is the leading network in terms of hosting decentralized applications (dApps) and smart contracts.

Ripple (<a href="/zh-tw/price/xrp-xrp" target="_blank" class="blog_inner_link">XRP</a>) may record astronomical growth this year if [its case against the SEC](https://www.gate.io/blog_detail/3315/ripple-scores-big-win-against-sec-2024-looks-bullish-for-xrp "its case against the SEC") is finalized and it manages to launch its [USD-pegged](https://www.gate.io/learn/articles/what-is-pegging-in-crypto/802 "USD-pegged") stablecoin. As we know, Ripple has many partnerships that include major financial institutions. A rise in its adoption will likely push its value up. The other cryptocurrencies that are likely to perform well in the next crypto bull run [are Avalanche AVAX](https://www.gate.io/learn/articles/what-is-avax/214 "are Avalanche AVAX"), Immutable X (IMX), <a href="/zh-tw/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> (MATIC), Chainlink (<a href="/zh-tw/price/link-ln" target="_blank" class="blog_inner_link">LINK</a>), <a href="/zh-tw/price/aptos-apt" target="_blank" class="blog_inner_link">Aptos</a> (APT), World Coin (WLD) [and Toncoin](https://hodl.fm/top-10-cryptocurrencies-may "and Toncoin"). Presently, the market which is relatively quiet is like a bomb ready to explode.

Recent news: [Ripple Partners with HashKey DX](https://www.gate.io/post/CryptoNews_/status/5543204 "Ripple Partners with HashKey DX")

## The New Wave of Investors - Bitcoin and Ethereum ETFs’ Role in Attracting New Investors
As explained previously, spot crypto ETFs have a great role in attracting new investors into the crypto sector. The ETFs make it easier and more convenient than before for traditional financial investors to invest in cryptocurrencies. This is because such investors are conversant with other derivatives.

As an example, [Gold and Silver ETFs have been on the market for decades](https://www.gate.io/learn/articles/different-types-of-etfs-explained/2545 "Gold and Silver ETFs have been on the market for decades") now and many people know how to invest in them. Therefore, it becomes easier for such investors to switch over to crypto ETFs since they are on the same traditional financial markets. Also, the fact that the ETFs are regulated means that they attract many investors who are risk-averse.

In practical terms, crypto ETFs enable investors, both individuals and institutional ones, to invest in exchange traded funds without the need to own digital assets or to buy and hold cryptocurrencies. As such, they bring simplicity to crypto-related investments.

What this means is that anyone, apart from tech-savvy individuals, can benefit from cryptocurrencies' price changes. The ETFs also reduce the chances of investors losing their funds through fraud or theft, something rampant in the crypto sector. Therefore, by making it safer and more convenient to invest in cryptocurrencies, the ETFs attract funds into the bitcoin and Ethereum markets. This new money inflow into cryptocurrencies can trigger and sustain a bull run. It also fuels excitement around cryptocurrencies which attracts more investment in the sector.

Read also: <a href="/zh-tw/how-to-buy/thorchain-rune" target="_blank" class="blog_inner_link">how to buy THORChain</a>

## Easy Start with Bitcoin and Ethereum: Expectations vs. Reality
After discussing how an increase in crypto investment can trigger and sustain a crypto bull run, let's look at how newcomers can invest in cryptos. Today, we focus on steps and precautions the new crypto investors should be aware of.

Easy Start, Modest Gains: One of the best investment strategies in crypto for beginners is to invest in leading cryptocurrencies like bitcoin and Ether (ETH) which have large market capitalizations and often have high trading volumes and liquidity. Once someone has invested in such pioneering cryptocurrencies, he/she can check their price changes after long periods such as 6 months. Within such a period the value of the cryptocurrency may have appreciated by between 2% and 3%. Similarly, during bull run periods tokens of layer-1 blockchains and lending protocols have a high chance of strong appreciation.

Digital Asset Investment : One of the best crypto investment tips is to invest the amount that you are prepared to lose if the worst happens. This is because risk and returns are two sides of the same coin. To illustrate, someone may invest in crypto with the aim of gaining 10%. However, the opposite may occur, he/she may lose 20% instead. Therefore, every investor in crypto whether new or seasoned should expect to gain or lose. Nevertheless, even if you lose the first time you would have learned something in the process.

Diversification: One of the important cryptocurrency trends is for investors to invest in different assets. What this means is that if you lose your money in some cryptocurrencies you gain in the others. For example, one can invest in memecoins, blue chip crypto and tokens of AI blockchain projects. It is best to spread the investment funds across several crypto asset classes. However, remember that meme coins are more volatile than the other crypto assets.

Three Emerging Trends to Watch: There are three narratives that can help seasoned crypto investors to select the best investment assets. One needs to understand the  digital asset he/she is interested to invest in and the blockchain innovations that support it. This helps one to gauge its utility and market demand.

Generally, people who are into cryptocurrencies are innovative and are always looking for new blockchain innovations. Money usually flows much into crypto assets that are backed by superior products. Bitcoin, Ripple (XRP) and Ethereum are examples of blockchains that support different innovations. Let’s look at three important narratives crypto investors should track at the moment. The leading narratives are artificial intelligence, tokenization and blockchain technology.

AI and Blockchain: Many new crypto innovations [involve integrating artificial intelligence with the blockchain technology](https://www.gate.io/learn/articles/intersection-of-blockchain-and-ai-a-deep-dive-into-fetch-ais-decentralized-machine-learning-platform/2702 "involve integrating artificial intelligence with the blockchain technology") to create superior digital products and infrastructure. Such blockchain technology enhancements capture the interests of investors through launching safe and trending digital products such as AI tokens. AI tokens are in high demand since they are based on the blockchain and AI infrastructures which provide essential services such as arbitrage trading.

Tokenization Narrative: Based on the current cryptocurrency market analysis one of the most demanded digital products are tokenized assets. Recently, some blockchain based firms have been tokenizing different assets such as gold, silver, real estate and debts. This simply means that any of these products has a digitized version on the blockchain. For example, a stablecoin that is backed by gold is a digitized gold asset.

In general terms, stablecoins represent tokenized assets. <a href="/zh-tw/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> USDT, for example, is a tokenized United States dollar. Currently, some innovative blockchains are tokenizing debts thereby creating a crypto debt market. For example, an investor who buys a fraction of a debt token provides funding towards raising capital for a certain project such as hotel construction. Therefore, tokenization of assets is creating new investment instruments. PV01 and Ondo Finance are examples of blockchains that specialize in tokenization of assets.

Blockchain technology: Some blockchains focus on improving their technologies through various means. That is a reason why some existing blockchains out- roll upgrades. For example, some of these upgrades improve network efficiency, lower transaction cost and eliminate congestion. Ethereum, for instance, introduced [Ethereum Virtual Machines (EVMs)](https://www.gate.io/learn/articles/what-is-evm/68 "Ethereum Virtual Machines (EVMs)") and zero-knowledge (ZK) proofs years after launching its first blockchain version.

The Role of Big Funds in Trend-Setting: Before you invest in any crypto projects it is wise to find if there are  big funds that have invested in it. As of now, we know that many big funds like VanEck, Fidelity and BlackRock have already invested in bitcoin [through BTC ETFs](https://www.gate.io/blog_detail/379/what-are-bitcoin-etfs-bitcoin-etfs-explained "through BTC ETFs"). If you invest in such a cryptocurrency you are likely to get a high return on investment.

## Conclusion
A new wave of bitcoin investors may inject much funds into the assets which could push its price up. The advantage of bitcoin as a crypto investment asset is that many new investors are willing to invest in it. However, beginners should spread their investment across several cryptocurrencies which are in different classes. It is also wise to invest in cryptocurrencies which are supported by big funds.

## FAQs about Bitcoin bull run
### Which crypto will boom in a bull run?
Bitcoin, Ethereum, <a href="/zh-tw/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a> AVAX, Immutable X (IMX), Polygon (MATIC), Chainlink (LINK), Aptos (APT), World Coin (WLD) and <a href="/zh-tw/price/toncoin-ton" target="_blank" class="blog_inner_link">Toncoin</a> are examples of cryptocurrencies that are likely to boom during the next bull run. Generally, most layer-1 protocol based cryptocurrencies are expected to do well during such a period.
### How long will bitcoin go in 2024?
By the end of 2024 the <a href="/zh-tw/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> may fluctuate between $100,000 and $120,000. However, there is also a high chance that it may surpass $120,000.
### Is bitcoin due for a bull run?
According to the existing crypto market dynamics, which include the recent BT halving, bitcoin is due for the next bull run. It may rally soon after the current consolidation phase.

<div class="blog-details-info">
<div>Author:* Mashell C.*, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

TL；DR

Introduction

Current Cryptocurrency Market Status: When Will the Next Bull Run Start?

The New Wave of Investors - Bitcoin and Ethereum ETFs’ Role in Attracting New Investors

Easy Start with Bitcoin and Ethereum: Expectations vs. Reality

Conclusion

FAQs about Bitcoin bull run

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Preparing for the Surge: Three Key Trends Shaping Bitcoin's Next Bull Run

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