The whole world sits up and takes notice when a cryptocurrency bull run takes place. There have been three notable bull runs over the last decade, the first in 2013, the second in 2017, and the third in 2021. It has been earmarked as a time when the price of Bitcoin explodes, reaching new all-time highs and causing dozens of other cryptocurrencies to follow in its path.
There are other factors at play for the next potential bull run. For example, the SEC in America has been relatively tolerant of cryptocurrency. They haven’t been the biggest cheerleaders but haven’t brought in an outright ban, as some countries have. This has helped the community flourish for the moment, and there’s a serious concentration of the top cryptocurrency and blockchain companies operating in America’s gargantuan technology sector.
However, that could all be set to change with a sustained and coordinated attack on the space that is taking place from regulatory bodies such as the SEC (Securities & Exchange Commission) and the CFTC (Commodity Futures Trading Commission).
Gary Gensler, the head of the SEC in the United States, has come out on the front foot against several cryptocurrency projects, comparing many of them to casinos. This unhelpful rhetoric sets a clear precedent that the SEC is looking to compare cryptocurrency to casino gaming when they are nothing of the sort. On the contrary, online casinos today offer crypto gaming, like those on https://www.ignitioncasino.eu/casino.
Easing Of Global Tensions
We live in a world where many world leaders are treading on eggshells in the desperate hope that they will be able to alleviate some of the more significant international issues. The outbreak of the Ukraine war has become the catalyst for a considerable rise in the cost of living throughout the rest of Europe and has increased tensions between Russia and the rest of the world.
Hopefully, this conflict will end sooner rather than later, so there can be a noticeable decline in global tensions. Of course, any economic benefit will be felt immediately, too, but far more important things are currently at stake.
However, an end to this conflict might be the catalyst that boosts investor confidence and could be one of the many factors that cause cryptocurrency to react favorably and kickstart a potential bull run. Conversely, heightening these tensions could plunge the world into uncertain times and kickstart a fresh crypto winter.
Regulatory Clarity
Countries like Hong Kong are set to allow cryptocurrency trading on their shores. With a set of Chinese banks allegedly looking to provide a platform for cryptocurrency projects to operate through the territory, it could starkly contrast the attitude the current American administration is leveling at the industry.
In any event, if there is news of robust, lucid regulation that allows cryptocurrency and blockchain companies to set up shop. Irrespective of whether it is in Hong Kong, China, the United States, or Europe, this could be enough to kickstart another bull run.
Legal Tender
As it stands, only two countries allow cryptocurrency to be used as legal tender. The Central African Republic and El Salvador. While both countries are modest, they wouldn’t consider themselves economic powerhouses. More work has been done in El Salvador, a larger economy currently winning the war against its entrenched gangland issues.
With their president, Nayib Bukele looking to encourage tech firms into the space by abolishing any tax they must pay, this could help generate international investment. Combining this with the fact you can already use Bitcoin as legal tender, the future looks promising for El Salvador. However, if a more prominent world economy looks to accept Bitcoin as legal tender, this could be all it takes for it to head off on a bull run again.
If you’re involved in cryptocurrency, you will be painfully aware of how sensitive the markets can be when reacting to negative news. Sometimes this news doesn’t need to be from a verified source or have that much impact, but it ends up tanking the price of Bitcoin by hundreds of dollars in a few hours. Likewise, other factors could propel the digital asset industry back into profitable times. There are landmark court rulings on the horizon for Ripple/XRP. With countries such as the United Kingdom looking to bring in precise regulation, if it is beneficial to the industry, this could result in a new dawn for a sector that could be the future of finance for decades to come.
Ultimately, some of the things we have discussed today will help protect these assets from such inflammatory sensitivity to economic news, and genuine regulation should help quell some of the vociferous, turbulent, and damaging rhetoric that has emerged from the United States and the governing bodies that control its central financial system.
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