Some of the factors that can trigger or contribute to a crypto bull run are
- Bitcoin halving: This is an event that occurs every four years, when the reward for mining new bitcoins is reduced by half. This creates a scarcity effect, as the supply of new bitcoins decreases, while the demand remains high or increases. Bitcoin halving is usually followed by a significant increase in the price of bitcoin and other cryptocurrencies, as seen in 2013, 2017, and 20201.
- Institutional adoption: This is when large and influential organisations, such as banks, corporations, hedge funds, and governments, start to embrace and invest in cryptocurrencies, either directly or indirectly. This signals a growing recognition and legitimacy of the crypto industry, as well as a potential increase in the demand and liquidity of cryptocurrencies. Some examples of institutional adoption are Tesla buying $1.5 billion worth of bitcoin in 20212, MicroStrategy converting its treasury to bitcoin3, and El Salvador making bitcoin a legal tender in 20214.
- Innovation and development: This is when new and improved technologies, platforms, and solutions are introduced and implemented in the crypto space, enhancing the functionality, usability, and security of cryptocurrencies. This also attracts more users, developers, and investors to the crypto ecosystem, as well as fosters more creativity and experimentation. Some examples of innovation and development are the launch of Ethereum 2.0, which aims to improve the scalability, efficiency, and sustainability of the Ethereum network, the emergence of decentralised finance (DEFI), which offers various financial services and products without intermediaries, and the rise of non-fungible tokens (NFTs), which enable the creation and ownership of unique digital assets.
- Media and social attention: This is when the crypto industry receives more coverage and exposure from mainstream and alternative media outlets, as well as social media platforms, such as Twitter, Reddit, YouTube, and TikTok. This can generate more awareness, interest, and curiosity among the general public, as well as influence the sentiment and behaviour of existing and potential crypto investors. Some examples of media and social attention are the viral tweets of Elon Musk, the popular memes of Dogecoin, and the influential videos of Crypto influencers.