Is the crypto winter finally coming to an end?

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After almost a year of slowdown, crypto markets seem to be on the rise again. Analysts are also predicting exorbitant prices, and Bitcoin is once again the poster child for resurgence. Is this the end of the cryptos winter of discontent? The Mint is reviewing:

After almost a year of slowdown, crypto markets seem to be on the rise again. Analysts are also predicting exorbitant prices, and Bitcoin is once again the poster child for resurgence. Is this the end of the cryptos winter of discontent? The Mint is reviewing:

What are the predictions?

What are the predictions?

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In a note published on Monday, Standard Chartered analyst Geoff Kendrick wrote that Bitcoin could potentially reach $100,000 by the end of 2024. He noted that the crisis in the traditional banking sector, including the crisis in Silicon Valley Bank, had given a boost to Bitcoin and the Crypto winter is finally over. He also added that European crypto regulations should provide a tailwind “for Bitcoin. This comes weeks after JPMorgan predicted an upward move in the price of Bitcoin due to a technical change in the underlying blockchain. underlying cryptocurrencies, called the halving”, which makes it more expensive. produce.

Are these the only predictions?

No. While analysis from Standard Chartered and JPMorgans may have caught people’s attention, Bitcoin has been rallying throughout 2023. In fact, the world’s most valuable cryptocurrency has crossed the 30 mark. $000 earlier this month for the first time in ten months. Although it has fallen since then, experts noted that the fall of Silicon Valley Bank and other crises among US banks have reaffirmed enthusiasts’ belief that the crypto system is not affected or controlled by the authorities. power stations. However, this is not necessarily true, as crypto markets have also seen a drop alongside traditional stock markets in the past.

What does the halving have to do with it?

The bitcoin halving happens every four years. This increases the scarcity of Bitcoin, which in turn increases the price. Bitcoin prices generally rose around this event, and the next halving is expected in about a year. The three halving events so far have all corresponded to a surge in the price of Bitcoin, with the first occurring at a time when its price increased nearly 100x.

Could there be other reasons for this increase?

Yes. For example, the Ethereum blockchain was invented in 2015, about a year before the third Bitcoin halving. This gave rise to decentralized apps, or dappsapps built on decentralized blockchains, which gave the crypto ecosystem more momentum than anything else in its short history. Dapps provided utility for these digital currencies and led Ether to become the second most valuable crypto in the world. Other reasons include the formation of large crypto exchanges and major banks taking notice of the industry.

Is a bull run possible?

Even though some experts expect a bull run for crypto again, they do not expect it to last forever. The crypto market has gone through several bull runs in its short history, and they are always followed by a bearish phase. No one expects volatility in crypto markets to magically disappear, and while the industry cites government regulations as welcome measures, some may still harm the industry’s and investors’ ability to invest in digital assets. Finally, a bull run does not negate opportunities for fraud, as seen in the case of FTX.

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