The cryptocurrency market has been bullish for a considerable part of 2021 (no, we’re not ignoring the potential drop). while it has certainly seen some falls, one can be pretty sure this bull isn’t going to hit a fence any time soon. After all, this bull run exceeded all their expectations and drew many eyes when bitcoin broke above the $50,000 mark for the first time.
one might wonder why the current execution is different from the previous one. For starters, it is easier for both retail and institutional investors to win from this race due to the presence of many online trading platforms like Wazirx. furthermore, this race doesn’t seem to end soon and is full of bigger expectations.
Reading: Is the bitcoin bull run over
These are the top five reasons why the bull run in the cryptocurrency market is not over. 1.pent-up demand:With the drop in employment due to the pandemic, people have undoubtedly looked for other sources of income, and cryptocurrencies came as a blessing in disguise in 2020. But that does not mean this enthusiasm soon will fade away given the recent reopening of towns and cities after a major lockdown, businesses have begun to open. Consumer confidence is expected to improve, as is the demand to buy more goods. This is where crypto comes in, riding the wave of improving consumer and business confidence and a pent-up demand due to covid-induced lockdowns. According to the latest reports, in India, crypto adoption is largely driven by Tier 2 and Tier 3 cities, with Bhopal showing the highest growth rate among small cities at 100%. 2.mass adoption:recently el salvador became the first country in the world to adopt bitcoin as official legal tender, where its president decided to give away up to $30 free bitcoin to citizens. Similarly, Panama is reportedly planning to follow in its footsteps, as are many other countries looking to create their digital currencies. According to Chainalysis’s Global Cryptocurrency Adoption Index 2021, India ranks second in cryptocurrency adoption rate. in fact, in many countries, cryptocurrencies are now considered a safe haven to beat inflation and market volatility. companies like square and microstrategy are increasing their investments in the crypto sector, and many other companies are looking to accept crypto as an acceptable means of payment soon. corporate confidence is adding more value to cryptocurrencies, contributing to the bull run. 3.bans and crackdowns:a blessing in disguise?: negative comments from some expert economists such as US treasury secretary janet yellen, tesla’s announcement to stop accepting bitcoin as tender legal for your purchases, or the recent bitcoin mining crackdown turned out to be a blow to the cryptocurrency market. But in the long run, all of this can seem like a blessing in disguise. While there are some negative commentators on cryptocurrencies, many long-term investors and countries (el salvador) are aggressively hyping it for its increased acceptance. With more and more institutions and companies looking to adopt and accept cryptocurrencies as legal tender, the pushback of one company could speed up the process of acceptance by other brands. Since China originally controlled 46% of the world’s bitcoin production before the mining ban, it also provided opportunities for other nations to establish their production units, which contributed to more, faster, and better bitcoin production and other alternative currencies. 4.The ‘Golden’ Cross:A golden cross refers to a situation where the short-term moving average price of an asset crosses the long-term moving average. For bitcoin, this happened in September, along with a different kind of golden cross. that of its tape hash ⦁, which also had a crossover between its 30-day moving average and its 60-day moving average. historically, this has indicated a significant gain in trading volumes. bitcoin hash tape is a measure of the computing power used on the bitcoin network in a given period. as seen in the past, every time this rate goes up, so do the prices of cryptocurrencies during the period. therefore, it is an indicator of the continued bull run. 5.scarcity driven by the bitcoin halving:given the limited availability of bitcoins in the market caused by the 4-year halving (a reduction in the rewards derived from mining a block currency of bitcoin by miners), there is considerable pressure from the demand for this asset. As the basic principles of economics state, higher demand and lower supply lead to higher asset prices.
This bull run marks the beginning of great things to come for the crypto market. with increased adoption by institutions, countries, and individuals alike, cryptocurrencies would be part of the mainstream. more and more platforms and portals facilitate the entry of investors to this market through various means and tools. one of them is wazirx, the most trusted cryptocurrency exchange in india. With fast kyc and transaction processing, strong security, availability on all platforms, elegant and simple design, wazirx is for everyone!
this article was written by pratik ahuja, senior marketing manager at wazirx