- A Bitcoin bull run typically follows a halving event
- Recent positive news from influential sources is not an accident
- Bitcoin’s fundamentals are perfect for the post-coronavirus economic landscape
A Bitcoin bull run is what every holder is looking for, and while there have been mini-runs since the high of $20,000 in 2017 there are signs that another one could be brewing. We examine three key reasons why we could be looking at all time highs for the Bitcoin price in the coming months.
History shows that a Bitcoin bull run usually occurs after a halving, normally topping out the following year. The 2016 Bitcoin halving kicked off the 2017 bull run, while the 2012 halving resulted in not one but two bull runs in 2013. If this pattern were to repeat, we would see a bull run and new all-time high either later in 2020 or in 2021.
A Bitcoin bull run is fueled by FOMO, and nothing quite generates FOMO like headline-making price increases and positive news in mainstream media. With so much control of Bitcoin’s price being ceded to institutions via Bitcoin futures contracts, the media narrative can now be controlled to a frankly alarming degree, with good and bad consequences.
Those who were around in 2017 will know all about the power of carefully placed media FUD in dropping the Bitcoin price, but the reverse is also true. Recent news stories, such as investment guru Paul Tudor Jones betting big on Bitcoin and JPMorgan offering banking services to Coinbase and Gemini, add weight to the idea that positive news is being carefully placed in order to facilitate a Bitcoin bull run.
Bitcoin’s Place in a Covid World
One of the reasons the likes of Paul Tudor Jones have changed their mind on Bitcoin in recent weeks is because it suddenly has a huge role to play in the financial impact of the coronavirus pandemic. Central banks around the world have turned on their money printers to the tune of trillions of dollars in order to prop up their already creaking economies, risking devaluation and hyperinflation with every billion they print.
It’s fair to say that this activity hasn’t gone unnoticed by market watchers, who are now on the lookout for safer stores of value such as gold, silver, and now, Bitcoin. Bitcoin’s fundamentals as a government-agnostic entity which cannot simply be augmented with trillions of freshly minted bitcoins have propelled it towards the front of the minds of hedge fund managers as an attractive play as the world tries to recover from the economic shock of the coronavirus.
This appreciation of Bitcoin’s core values has helped solidify its use case after eleven years of trying to decide if it wants to be a currency or a store of value, and with so many influential people taking an interest, it won’t take long before the price reflects this.
Roll on 2021
These three reasons are a strong argument as to why we should expect a Bitcoin bull run within the next 12 months, with the potential to hit $100,000 in 2021 a legitimate target. The question is, have you got enough?