The historical significance of crypto bull markets lies in the fact they showcase a potential for mass adoption, raise regulatory concerns and highlight underlying market sentiment. However, the upward trends are not constant. Corrections or bear markets, marked by price drops, are a common feature following crypto bull runs.
Markus Thielen in his book Crypto Titans described this situation: “exuberant bull markets in the crypto industry have always been interrupted by violent bear markets”. For context, in the four bull runs(2011, 2013, 2017 & 2021),the crypto industry made trillions of dollars and lost billions of dollars to financial alchemy, crypto scams, hacks, and bankruptcies.
The questions of the long-term sustainability of crypto bull market, mass adoption and e of great interesting topics to explore given the growing institutional interest in cryptocurrency. In this interview, CrowdSwap CEO Christian Mülder provides valuable insights into crypto bull markets and the key drivers of mass adoption.
I honestly think that it is not totally wrong to view the recent SEC approval of spot Bitcoin ETFs as the beginning of another bull market because the trend has been consistently upward so far. The approval was indeed a watershed in the history of Bitcoin and the crypto industry as a whole.
Although it didn’t have much impact on the price action, it bolstered the demand for Bitcoin and introduced it to new investors as an asset class. The beginning of a bull run in 2024 can also be identified by price stability, a rising BTC hash rate, and a positive shift in the fear and greed index. Lately, we have also witnessed how the rise in crypto stock prices like GME can signal growing investor confidence and the potential start of a bull run.
As of the present time, the broader market sentiment favors yield-bearing stablecoins, AI, data privacy, the tokenization of real-world assets (RWA), and DePIN projects. Various companies are innovating in these fields and it is interesting to see how they are competing to outdo each other in a race to dominate these emerging markets.
The main reason why these industries are tipped to outperform this year is that they are the next trillion-dollar industries. DePIN, for example, leading crypto analyst firm Messari estimated that the Total Addressable Market of DePIN will reach $3.8 trillion by 2028, while Citi estimated that the value of tokenized assets will hit $1.5 trillion by 2030. I think investors are not only looking to fund the best ideas out there during a bull run but are also focused on their ability to establish a significant presence in these emerging markets.
Crypto bull markets are moments of great excitement that usually come with a price correction. To be a potential catalyst for mass adoption, they need to be more resilient and sustainable. Thinking of the long-term goes beyond capitalizing on the periods of significant price increases. It includes strategic planning for the long run.
For both new and experienced investors to map out long-term investment strategies during a bull run they must be able to identify projects with strong fundamentals and long-term growth potential.
This brings us to the popular rule of thumb: invest only what you can afford to lose. This safeguard is literally what some investors adhere to in practice and it is a warning sign that should be taken seriously due to the volatile nature of the crypto market. However, you will agree with me that this is not the only proven way to avoid significant losses.
By the way, the crypto industry as a whole will be very well advised to remember that it was also a victim of the lack of risk management that unfolded in the implosion of Terra Luna, FTX, and other crypto exchanges in 2022.
It is extremely important to understand risks and map out strategies to manage them effectively in a bull market. By diversifying their portfolio, monitoring market trends, setting clear investment goals, and adhering to a predetermined exit strategy, investors can enhance their risk tolerance in a bull market.
The rapid advance in blockchain technology can be seen in cross-chain communication, which breaks down the barriers between blockchains. In essence, cross-chain communication signifies a significant step towards a more interconnected blockchain ecosystem.
We were motivated by the need to help investors maximize profits during a bull run through active participation in staking and yield farming opportunities and through our cross-chain swapping features, which enable users to move assets across different blockchains efficiently, potentially capturing arbitrage opportunities and benefit from price differentials.
Staking and yield farming can enhance returns during a bullish market phase by providing competitive APY returns and the flexibility to withdraw tokens from liquidity pools anytime, which can be advantageous for short-term strategies. To help investors maximize bull market opportunities, we built a platform powered by our token, the CROWD token, and we place a premium on user-friendliness, speed, security, cross-chain limit order, and fee transparency.
Coinbase recent report identified the return of DeFi as one of the key events that are likely to drive market growth in 2024. While I completely agree with this report, I would like to add that the growing intersection between AI and blockchain, the comeback of NFTs, and the evolution of Ethereum as a key platform for tokenized assets will likely drive significant market growth this year. Investors can capitalize on these opportunities by staying abreast of the latest developments and investing in projects at the forefront of these trends.
Information is key. We offer a range of educational resources designed to help both novice and experienced investors navigate the bull market effectively. These resources include detailed guides on how to use the platform, articles explaining the fundamentals of crypto trading, and tutorials on advanced trading strategies.
Our community, accessible through various social media channels, provides a supportive environment where users can exchange ideas, discuss market trends, and receive updates on the latest features. Additionally, webinars and Q&A sessions with industry experts can help users to stay informed and make better investment decisions during a bull market.