The recipe for the next bull run – While the course of cryptocurrencies seem to be on the rise again on the back of some positive news, the next bull run always feeds the conversations. When will it start? Will it come from Asia or from the United States? It is of course impossible to predict future economic cycles with great precision. But some scientists have worked on the elements to bring together to trigger a major movement on Bitcoin & Co. A team of researchers led by Aurelie Bartherespecialist in “investment signals” at Nansen Researchhighlighted two essential criteria to initiate the next bullish cycle. And we will detail them together.
Ingredient number 1: lower inflation
What was to be “transient” last year, then who was “tenacious” and who is now “ stubborn “ ? The answer is… theinflation. Kudos to all the correct answers! Indeed, it is the first criterion prior to the bull run that is underlined by the research teams at Nansen Research. Specializing in on-chain data, this company regularly provides various reports on cryptos and the different sectors of web 3. The significant inflation that affects all continents is a brake to the economic recovery, even if it does not have the same causes and the same consequences from one country to another.
The researcher notes that the behavior of central banks to try to stem this inflation is not the same in the United States or in Europe. Even less in Japan and in the BRICS countries, which also have another mode of operation. However, interest rate students within the European Union or the United States weighs down the economy and paralyzes investment in the risky assets of which crypto is a part. Here’s how she sums it up:
“ High rates for a longer period will maintain a ceiling on cryptocurrency prices. We reiterate this simple observation that staking ETH for an annual return of around 5% is less attractive than investing in US Treasuries at 5% and above, given the risk profile of the former. »
>> Binance offers you 1 chance to win 1 bitcoin! Register quickly to click on the button (commercial link) <<
Ingredient number 2: a clearer regulatory framework in the USA
After a drop in inflation, the second element expected to revive the bulls will be a regulatory clarification in Washington. On this point, the researchers join a large part of the leaders of the major American platforms who are calling for a clear and lasting legal framework. Brian Armstrong for Coinbase or the Winklevoss brothers for Gemini keep repeating it. And their conflict washed up with the DRY is a major obstacle to the revival of the next bull cycle.
Is it serious, Doctor? To this question, the researchers make the following answer:
“BTC’s low selling volume and continued decline in crypto volatility tell us that a lot of bad regulatory and macro news is already priced in. »
Understand that the market, the smartmoney as we say across the Atlantic, has already integrated all of these parameters and is now waiting for the slightest positive signal to react. The analysts from Nansen Research ultimately came to the same conclusions as most knowledgeable crypto industry observers, who wait news from the SEC for regulation and the Fed for inflation.
Indeed, despite the tilting of part of the crypto leadership to Asia, UNITED STATES continue to set the tone for a large part of the economic world. Moreover, in recent days, we have witnessed a succession of ETF requests around Bitcoin from American investment funds which makes the market react favorably. Is this the start of the bull run? According to the researchers, not all the conditions are met, but small signs could suggest that some official positions are changingr.
If at the end of this article, you are still hesitating, know that there is really only one possible choice. Do nothing and let someone else win… or register now on Binance THE reference crypto platform, to try to win the game and add 1 bitcoin to your portfolio. What do you decide? (commercial link)