After facing a strong resistance near $ 60K mark for a period of three weeks, Bitcoin finally managed to cross the barrier of $ 61,000 which was it’s previous All-time high. On 14th April 2021, it touched a new ATH when its value reached $64,600. However, it has consolidated back to the range of $60K – $62K, but the ongoing bullish run for bitcoin is unlikely to end soon.
The fact that Bitcoin is having a strong bullish run at the moment only means the prices would be going up and new ATHs will be touched. A lot of people have this doubt about how long this bullish run will sustain. What if they invest into BTC now and its bull run ends leaving them bankrupt?
Well, we have come up with this article to solve these concerns. We believe Bitcoin’s bull run is unlikely to end soon and we have 3 reasons behind thinking like this.
However, if you want to read about the cryptocurrencies which are unlikely to touch their ATHs again, click here.
The continuous addition of institutional investors
When Elon Musk announced about his $ 1.5 billion investment in bitcoin a couple of months back, it made Bitcoin reach its All-Time high of $ 43,625 back then. The prices surged up to 10% on that particular given day itself.
However, it is not just Elon Musk and his company Tesla Inc which has invested in Bitcoin off late. The institutional investors keep coming on a regular basis. MicroStrategy, Grayscale, Square are jumping on the bitcoin bandwagon like there is no tomorrow.
As a matter of fact, Grayscale has now become the largest acquirer of BTC with owning 4% of the total bitcoin. 87% of the Grayscale investors are the institutional investors.
The bull run is getting stronger and stronger with nearly every reputable investment firm, large Fintech companies like Blackrock, Fidelity, JP Morgan, Bank of England, CitiBank buying BTC. They have even predicted Bitcoin to reach $ 200,000 pretty soon.
Bitcoin’s 4 year Bull cycle
Bitcoin has hit the end of its 4 years halving cycle already. To explain this, Bitcoin’s first bull cycle sustained itself for 2 years which was in 2012-13. Second bull cycle lasted for 3 years from 2015 to 2017. We are in the second half of the third bull cycle which is expected to run for 4 years (2019-22).
Bitcoin’s prices have normally risen up to 100 times from the bottom (beginning of the bull cycle) to the top (ending of the bull cycle). The speed increases furthermore once the cycle hits its half. Currently, the third bull run has already crossed the end of its halving cycle which gives a strong signal behind why the bull run is likely to continue.
Stimulus money coming in from retail investors
Along with the money flowing in from the large ventures such as Graycale and Tesla, small retail investors are also buying Bitcoin hence bringing more money into the market. As long as investors, whether large or small are willing to buy Bitcoin instead of selling it off, the prices are only going to go up and the bull run is likely to sustain itself for longer period.