With Bitcoin above $35k USD and the overall crypto market in the green for what feels like the first time in a year, retail and institutional investors alike are likely wondering if we’re beginning the next bull run. While there are still those that expect the market to turn down once again, overall it seems like the bear market could be over. Let’s take a look at some of the bullish signs across the markets in an effort to help determine whether the bear market is over.
Bullish Signs
Altcoin Resurgence
As is often the case in a bull market for crypto assets, altcoins are seeing big gains after being dormant for so long. Generally speaking, what happens is that Bitcoin goes up in value first, and then traders take those profits and put them into altcoins before they start to go up too.
This seems to be what has happened here. Bitcoin finally got back over $30k towards the end of October (Uptober!) and then fairly quickly got to around $35k where it has been essentially moving sideways. Since it started moving sideways, altcoins have seen tremendous growth.
In the last 30 days, even though Bitcoin is up 30%, many altcoins in the top 25 by market cap are up even more. Solana (SOL), is up 146%. Cardano (ADA) is up 46%. Polygon (MATIC) is up 70%. Chainlink (LINK) is up 90%. The list goes on. Even the worst performing altcoins seem to be up 20% in the past month.
ETF Excitement
There’s a fair amount of consensus among market experts that a spot Bitcoin ETF will be approved within the next few months. When exactly is yet to be determined, but it likely won’t be preemptively announced as to help avoid market manipulation.
There are varying estimates in the hundreds of billions of dollars regarding how much new investment money could flow into Bitcoin if and when these ETFs are approved. Both Bitcoin and the rest of the crypto market’s prices are responding to such rumors. Bitcoin’s price jumped over $30k USD for the first time since June in late October and it hasn’t really slowed down yet. It will be interesting to see just how the price action for Bitcoin and the rest of the market shapes up over the next few months and if and when ETFs are approved.
Inflation Still High
Though there are positive signs when it comes to metrics such as inflation and the consumer price index, the reality is that inflation is still high. The average person likely feels like they’re losing money everyday as they can’t keep up with rising prices for food, rent, and utilities.
Though these sorts of individuals aren’t likely to be investing in crypto on a large scale, it’s possible that retail buyers of Bitcoin are going to be more and more enticed to buy Bitcoin with their weekly savings rather than just put it in a fiat account. In fact, retail investors are the biggest buyers of Bitcoin exposure at this time, as whales can’t move their holdings without affecting their price slippage too much. It seems like the average person is starting to realize that a savings account doesn’t necessarily improve their purchasing power when it gives a percentage that is outpaced by inflation.
Closing Thoughts
Though there’s certainly no guarantees that the bear market is over and a bull market has started, the signs are there. It’s certainly possible there will be a pullback in the market, but it seems unlikely that the momentum being built by the digital asset sector is going to suddenly disappear. If we’re headed into a bull market, get your popcorn ready because it’s likely to be unlike any before it.
