Bull run approaching? Since the start of the year, what was initially just a possible rebound seems to be turning into a lasting upward trend for Bitcoin. A movement supported by the prospect of the next halving, scheduled for the end of next April. But also by a possible approval of Spot Bitcoin ETF, marking the true start of this run for many institutional investors. A dynamic at the origin of a significant return of liquidity in the cryptocurrency market. And it is not the actions of Coinbase (COIN) or Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) that will say the opposite.
Are all the indicators green?
The recent – but still fleeting – Bitcoin crossing above the $42,000 mark gives wings to the cryptocurrency market. Because this seems to confirm an upward trend finally started since the beginning of the year. With an annual return of +140% from which the main players in this digital economy want to benefit.
I have to say that the year 2024 promises to be rich in historic events. With, first of all, the planned prospect of the 4th halving of Bitcoin, whose bullish dynamic likes to repeat itself. But also an approval of spot Bitcoin ETFs at the origin of an “invasion of money”according to the estimates of the former president of the New York Stock Exchange recently converted into crypto press boss.
And, as each cycle is different, the one that is coming seems to be able to measure yourself using actions now associated with certain crypto companies. Indeed, COIN action on the Coinbase platform poster an increase of more than 300% since the beginning of the year. A good performance which, however, does not yet make it possible to erase the losses recorded since its peak, still located 170% higher (around $380).
A trend also confirmed for the MARA action of Bitcoin miner Marathon Digital. In fact, the company records an increase of 350% over the same period, with a peak of +465% last July. And according to the analyst Tony Sycamorethis upward dynamic would be supported “by a set of favorable winds never seen since 2021.” Would the lights all be green?
Has the Bitcoin bull run already started?
The question is on everyone’s lips. Has the Bitcoin bull run already started? And if we don’t just focus on the graph of BTC, certain clues seem to point towards a rather positive answer. Like for example the latest report from digital fund manager CoinShares, which indicates a massive influx of liquidity into crypto investment funds.
“Digital asset inflows totaled $176 million last week, reaching a 10-week total of $1.76 billion. This wave of inflows is now the largest since October 2021, when futures ETFs were launched in the United States. »
CoinShares
Even the American platform – with European ambitions – Robinhood seems to be drawing its arrow from the game. Indeed, it displays in its latest form 8-K, filed with the Securities and Exchange Commission (SEC) of the United States on December 4, that “the notional volumes of crypto transactions for November were approximately 75% higher compared to October 2023 levels.” A result which allows its co-founder and current CEO, Vlad Tenev, to consider a “nine-figure” annual turnover. However, Wall Street still remains very skeptical about the performance of its HOOD shares (+17.5% since the beginning of the year).
Either way, this uptrend will essentially have to survive effective approval of spot Bitcoin ETFs to be validated as sustainable. This while taking into account the growing proportion of institutional investors in this approach to the 4th halving of Bitcoin. The question is to know how the next crypto bull run will unfold in the face of this ongoing paradigm shift.