Investors and traders will remember 2021 as an excellent year for the crypto market. A generalized bull run led many cryptocurrencies to reach new all-time high prices. Then, everything changed in 2022, when the crypto community saw in horror how the prices of many crypto assets plummeted. Despite the catastrophic crypto winter, most people in the crypto world remained optimistic. Even though the prices of most cryptocurrencies are still far from their all-time highs, there have been some signs of recovery. Several analysts are already speculating about the possibility of a new bull run.
Bitcoin (BTC), the first cryptocurrency to ever exist, the most popular and valuable by market capitalization, can play an important role in kickstarting the next crypto bull run. The BTC price has been relatively stable in the last months, although it fell to nearly $15K in 2022. Despite fears of the BTC price sinking to $5K or less, it steadily climbed to over $30K this year. As of writing, it traded at $29.6K.
The BTC price will likely never fall below $5K because there is now much more significant investment in this asset. Banks and other financial institutions have invested in Bitcoin, and even the government of El Salvador adopted this crypto asset as a legal tender in its territory in 2021. Use cases for this cryptocurrency have greatly expanded, and lucrative industries like the casino industry use Bitcoin for most payments.
Moreover, the Bitcoin halving will occur in 2024. This event was designed to keep Bitcoin deflationary by increasing its scarcity. One can expect the halving to boost the BTC price through the basic principles of supply and demand. However, other underlying conditions must be present. For example, economically solid conditions and substantial retail investment must exist. Bitcoin could enter a new bull run if such conditions exist during the halving.
XRP Could Be the Decisive Factor
In short, although Bitcoin’s halving could trigger a BTC price increase leading to an eventual crypto bull run, it might not happen if other conditions are absent. However, a recent event could be the decisive factor in kickstarting a new crypto bull run regardless of whether the abovementioned conditions are present. This event is Ripple’s partial victory in the legal battle with the U.S. Securities and Exchange Commission (SEC) over the XRP cryptocurrency.
On July 13, 2023, U.S. District Judge Analisa Torres ruled that XRP is not a security in regard to programmatic sales on digital asset exchanges. However, the federal judge ruled that XRP is a security when sold to institutional investors. This monumental decision will likely have substantial ramifications for the crypto industry. It is a helpful precedent for other cryptocurrencies that the SEC considers unregistered securities and crypto exchanges being accused of operating as unregistered securities exchanges, brokers, and clearing agencies.
If the ruling survives the potential appeal, Ripple's legal victory will likely send the XRP price skyrocketing. Some experts think XRP will cross the $1 barrier this year. If XRP goes up, it might pull the rest of the market up with it. A new crypto bull run!
Conclusion
After a catastrophic crypto winter, investors and trading hope for a new bull run. Two significant events could kickstart the long-awaited bull run: Bitcoin’s halving in 2024 and Ripple’s legal victory in 2023. Crypto adoption is at the highest levels, so a new bull run might be around the corner. If you want to invest in cryptocurrencies, you can buy and swap over 3,900 digital assets on LetsExchange.io at competitive rates.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk