When we say ‘next bull run’ we aren’t talking about the next time Bitcoin climbs $1,000.00 and we aren’t talking about XRP hitting $1.00 either, we are talking big, a huge bull run that might take a month or two to complete, but one that will cause the price of cryptocurrency to soar. By bull run, we mean Bitcoin to $15,000.00 + and XRP to $3.00 +.

As many of you will know, the last time we saw a bull run of this scale was around 12 months ago, during what is now affectionately known as the 2017/2018 market surge. During this time, Bitcoin tipped a $20,000.00 target and made some incredible movements, all in the space of around 5 - 6 weeks.

The trigger for this bull run is said to have been a mixture of a surge in the general mainstream popularity of Bitcoin and cryptocurrency, as well as the launch of Bitcoin Futures Contracts. Together, the two set off a motion of positive and optimistic news that encouraged massive surges across the months of December and January. Sadly, as we moved deeper into 2018 and as you all know today, this surge tailed off into a deep reversal, which has resulted in the prices we see today, with the likes of Bitcoin, XRP and Ethereum way down from their all time highs as recorded around this time last year.

Now, in order to start to feel a little more optimistic, we want to explore exactly what is likely to cause the next bull run. Before we do this, I should highlight that nobody can really guarantee how, when, or why the next bull run will happen. We don’t know how large it will be and we don’t know when it will take off. We don’t know what price Bitcoin will reach, nor do we know how high it’s neighbours XRP and Ethereum will be valued. Therefore, take this as speculation and do not use this as inspiration to invest. If you do want to invest, do so based on your own prior research and remember to only invest what you can afford to lose. Cryptocurrency is risky, even when a bull run is looking likely.

https://soundcloud.com/cryptodaily/heres-what-could-cause-the-next-bull-run

The Bitcoin ETF

With it being ‘mostly’ assumed that the launch of Bitcoin Futures Contracts caused the 2017/2018 market surge, many believe that the next surge will be triggered by the eventual approval of a Bitcoin ETF. This is a debate that has been ongoing throughout 2018, with many entities placing Bitcoin ETF applications with the United States Securities and Exchange Commission (SEC). In order to run a Bitcoin ETF, companies need to seek approval of said ETF by the SEC.

This saga has seen the likes of Gemini owners, the Winklevoss Twins apply to host their own Bitcoin ETF, but to no avail, after a number of rejections from the SEC. As it stands, a number of applications are currently being reviewed by the SEC, who keep pushing back their decision making deadlines, much to the frustration of investors.

Most importantly, an application from VanEck is currently in place with the SEC, this is seen as the one ETF to rule them all and many assume that an approval of this will trigger the next bull run. The SEC had agreed to finalise a decision on the status of this ETF by the end of December 2018, however, the SEC have now announced that they won’t be finalising any decision until February 2019. According to ETH News:

“The US Securities and Exchange Commission (SEC) decided to delay a decision to approve a proposal presented by the Chicago Board Options Exchange (CBOE). The proposal outlined a rule change that would allow it to "list and trade shares of SolidX bitcoin shares issued by the VanEck SolidX Bitcoin Trust," thereby creating the first bitcoin exchange-traded fund (ETF).

According to the notice published by the SEC, the exchange first filed the proposal on June 20. On August 7, the SEC delayed its decision until September 20. However, the regulatory body again failed to make a decision, and yesterday announced it would again delay a decision on whether to approve the VanEck SolidX Bitcoin Trust ETF – this time until February 27, 2019.”

Why will this trigger a bull run?

Well, many believe that the Bitcoin ETF set up is ideal for institutional investors. Therefore, many believe that once an ETF is approved, institutions will start to pump a lot of money into Bitcoin, thus raising it’s value. Moreover, excitement surrounding the ETF is likely to encourage more general buying too, also contributing to a spike in the value of Bitcoin. These two factors combined could be enough to send Bitcoin back up to $20,000.00 and in the long run, perhaps even further beyond.

Stablecoins

Another theory is that the rise in stablecoins will trigger some huge growth in the markets during the next year. The use of stablecoins has seen a huge increase over 2018, simply because stablecoins allow investors to access more cryptocurrencies, without being subject to much of Bitcoin's volatility. Traditionally, to purchase altcoins, one needs to purchase Bitcoin first in order to then go ahead and pay for the altcoins. This is problematic because Bitcoin has a sensitive price that changes rapidly, meaning investments can become worthless very quickly. Stablecoins however reflect the price of FIAT currencies and are therefore far less volatile, but still allow investors to make crypto to crypto payments.

In essence, stablecoins make cryptocurrency investment better and safer, which leads many people to believe that a surge in the popularity of stablecoins will encourage more people to invest in 2019.

If we see a significant spike in the number of new people purchasing Bitcoin (for example) over the next year, then we are likely to see a huge surge in the value of Bitcoin, stablecoins could be the factor that eventually encourages that new wave of buying. According to Ethereum World News:

“Price-stable coins, such as Tether’s popular yet controversial USDT, allow both merchants and consumers to transact in crypto without being exposed to the severe price volatility that has characterized the market throughout 2018. While some, particularly investors looking to trade and speculate on crypto, will find the lack of price appreciation or market-driven value a drawback, the majority may find stablecoins more palatable for everyday use–which is the type of adoption that could set cryptocurrency back on the road to greater acceptance.”

Whilst we can’t guarantee what will cause the next bull run, many are confident that it could be down to one of the above. It is more likely though that actually, a combination of the two will encourage the next bull run. A Bitcoin ETF approval will pump the price of Bitcoin, will stablecoins therefore allow this pump to be more seamless? We think so.

Here’s to the next bull run, whenever it may be!

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