The run-up to the Bitcoin levels in 2023 was fueled mostly by anticipation of the ETF rather than actual market penetration. Current crypto market trends resemble the early stages of previous cycles rather than a genuine bull run. Macroeconomic factors such as interest rate fluctuations and quantitative easing could potentially trigger the real bull run in Q4 2024.
Despite growing enthusiasm around Bitcoin in 2023, many investors have expressed frustration, claiming the anticipated bull run hasn’t met expectations. While Bitcoin did see an early surge, this spike seems isolated, disconnected from the larger cryptocurrency market. Experts believe that what has occurred so far does not indicate a full-blown bull run. Instead, this year’s price activity mirrors minor bullish corrections typical of bear markets.
Bitcoin’s early rally in 2023, spurred by the ETF launch, led many to believe a bull market had begun. The significant influx of funds into Bitcoin caused its price to skyrocket, boosting trader morale. However, this was just a regional rally and did not reflect overall market movement. The steep rise in Bitcoin’s value was mostly associated with institutions’ anticipation of the ETF, not general economic indicators.
As a result, many altcoins and other virtual currencies did not see similar gains, frustrating many traders. Current market trends resemble the early 2016 and 2020 cycles, where traders often mistook Bitcoin rallies for a full bull run, indicating that the market still needs substantial economic shifts.
What could trigger the bull run in Q4 2024? Experts suggest that cryptocurrencies are highly sensitive to macroeconomic conditions. Monetary policies, especially changes in interest rates and quantitative easing by the Federal Reserve, have a significant impact on market sentiment. If fresh capital injections and lower interest rates occur in the last quarter of 2024, many believe it would signal the start of a real bull market. When the economic environment becomes conducive to higher-risk investments, Bitcoin is expected to move above its current levels, creating a more stable environment for altcoins.
