Right now, we’re right in the middle of the most bizarre crypto bull run in history. It’s not like the ones we’ve seen in 2012, 2016, or even 2020. No, 2024 is an entirely different beast.
And there are many reasons for that, from Bitcoin’s consolidation to meme coins that won’t die.
BTC’s been rolling between $53,000 and $74,000 since March when it broke all-time high twice. Since then though, we’ve been in a tight consolidation.
Traders are watching closely because, historically, this level of consolidation is always followed by a massive surge in October.
Some analysts predict Bitcoin might hit $290,000, which would mean a 320% jump from today’s price of about $64,000.
Institutional push and altcoin frenzy
Institutional interest is intense right now thanks to the introduction of Bitcoin spot ETFs. With more big money flowing in, demand is expected to skyrocket.
And since Bitcoin’s supply is super limited, all demand does is increase its value consistently. It’s basic economics.
Altcoins are getting their moment too. Ether, SOL, XRP, and BNB are all thriving right now. China decided to put $500 billion in an economic stimulus package, which pumped up the markets.
Analysts are saying that it’s going to lead to more liquidity and boost confidence among investors.
Historical data shows that when China moves big, the markets respond big. And that’s exactly what’s happening now. Plus, Uptober.
Retail investors are back in full force. After a quiet stretch in the last bear market, they’ve returned with a vengeance.
That’s bringing a whole new level of excitement to the market. Even euphoria is in the air, as some altcoins have gained over 200% in just a few weeks.
This time around, people are calling it more sustainable than past bull runs, though who knows? The numbers look good for now.
The showdown
What’s really nuts is that altcoins are actually actively outperforming Bitcoin. In previous bull runs, Bitcoin always led the charge, but we’re looking at a 200% gap right now.
Then there’s MicroStrategy. The company just threw another $472 million at Bitcoin, at $61,000 a coin.
Meanwhile, the stablecoin reserves on exchanges are super low, but that’s just a sign of potential upward price pressure.
Global economics is also playing a role. The uncertainties in traditional markets and the possibility of more rate cuts from so many central banks make crypto look even better as an investment.
With traditional assets offering less, Bitcoin is the place to be for those seeking higher returns. The fundamentals are strong for long-term growth, especially as global monetary policies remain soft, as Arthur Hayes explained to me in our exclusive interview .
Media coverage is ramping up too. Crypto is all over the news again, and that’s bringing more people into the market.
And then of course, the meme coins. Solana meme coins have managed to completely dominate this bull cycle.
Meme coins have always been a cultural phenomenon in the crypto industry, but this time they’re quite literally driving investment trends in the market. Some analysts believe they could make or break it.
The last trading day of September saw a slight dip in the market. Bitcoin fell 3.7%, landing at $63,451 after briefly touching $65,000. Crypto stocks did the same. Coinbase dropped by 6.8%, and MicroStrategy was down 4.3%.
Analysts blame this on overbought conditions. Meanwhile, last week, the Bitcoin ETFs saw a combined net buying volume of 16,774 BTC.
This is way more than the usual monthly supply of newly mined Bitcoin, which is 13,500.
Federal Reserve Chairman Jerome Powell’s recent statements also shook investors a bit, warning that future rate cuts are not set in stone.
Folks are also prepping for potential disruptions with geopolitical tensions getting worse every day and multiple world leaders mentioning World War III.
