Bitcoin’s Possible Timeline to Its Next Big Bull Run: The Humpty Dumpty of Current Crypto Climate
Since the bitcoin crash first took place in late-2018, the industry has been waiting for the market to recover and enter its next bull run. In the last few days, bitcoin has seen some recovery, rising from around to $3,500 to just under $4,000. From all indications, the bitcoin market has the potential to grow but is facing some challenges.
A few times, the bitcoin price has risen slightly above $4,000 and almost immediately fell back below and this has left investors frustrated. On the other hand, many feel that bitcoin can and will eventually go back to its record high of $20,000 per coin.
However, there might be a few obstacles to this. First, trading in the bitcoin market isn't quite as lucrative as it once was and as result, investors have found themselves looking elsewhere in the blockchain market. Also, the mining of bitcoin has become very unprofitable, leading many firms such as GigaWatt to close down due to reduced demand.
What Can Be Done?
Despite all the setbacks in place, many bitcoin enthusiasts argue that bitcoin can still get back to its glory days. It just needs to attract enough attention from investors and traders to get the ball rolling. However, due to its current price and the decline of the mining industry, it will need some muscle to pull this off. The muscle in question will likely be in form of institutional investors.
When bitcoin was in its foundational state, it saw investments mainly from those who believed in it from the start. Now, things are different and bitcoin is aiming much higher than before. The blockchain industry itself has grown and is seeing adoption worldwide. As a result, the amount of financial backing needed to make a recovery will have to come from institutional investors.
During the price explosion of a few years ago, the hype surrounding bitcoin was at its peak and investors were willing to put huge amounts into the market. Once the decline took place, many investors were burned and are now cautious about investing more.
In order to get these large investors to put their weight behind bitcoin, the market has to show some significant level of improvement and if it does, larger firms and investors could decide to come in. If that happens, even larger firms will follow suit and the long-awaited bull run could take place.