How to Best Prepare For The Next Crypto Bull Run [2024]
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Dec 5, 2023

How to Best Prepare For The Next Crypto Bull Run [2024]

The new year is almost upon us, and many people are looking forward to enjoying festivities and a break from work.

It's also the time of year when crypto enthusiasts, founders and analysts start to speculate on how they think the crypto market will perform next year, and whether the next bull run will finally arrive after a persistent bear market in 2023. 

This speculation tends to revolve around how well Bitcoin (BTC) and Ethereum (ETH) will do, but also includes the performance of many altcoins, and whether there will be possible blockchain adoption for certain chains. For the most part, there is a lot of optimism behind these predictions, and in some cases, incredibly bullish outlooks for the price of BTC. 

But here lies the problem. 

Although it's nice to be optimistic, the truth is that no one can predict how the market will be in 2024, or when the next crypto bull market will be upon us. What you can do, however, is to prepare for the eventuality of a new crypto bull run, and this article will provide you with 5 tips on how to best prepare for one. Before we do, it is important to first look into what constitutes a crypto bull run. 

What is a Crypto Bull Run

The common interpretation of a cryptocurrency bull run is when there is a 'sustained increase' in price across a significant number of crypto assets. Furthermore, investor confidence is usually high during this period, which in turn leads to increased buying activity; further driving up prices. 

So whilst many of you reading may believe they already know what a crypto bull run is, contrary to popular belief, what constitutes a bull run is actually down to interpretation, and there are various metrics that different people use (individually or combined) to identify one.  

Below are some common indicators:

This is not an endorsement. There is no foolproof method for predicting the future performance of the crypto market, any indicator should still be considered as speculative.  

Price Increase: 

The most common indicator used by most crypto enthusiasts is whether or not there is a dramatic and sustained increase in the price of cryptocurrencies.

In terms of the time frame, this is subjective and down to each person, but a bull market is usually measured over weeks or months. 

Market Cap Growth: 

Another popular bull run indicator used by analysts is whether there is significant growth in the overall market capitalisation of the crypto space. This takes into account the aggregate value of all cryptocurrencies, and not just the price of individual tokens.

Trading Volume: 

An indicator that tends to accompany rising price movements is a surge in trading volume, which if prolonged, would lead some to consider this to be evidence of a bull market; reflecting heightened investor interest and market participation.

Media Coverage/Sentiment:

Some less technical and experienced crypto enthusiasts can at times tap into an array of different media sources to see whether the industry has come out of a crypto winter, or whether the start of a bull run could be happening. This can include upbeat news stories, announcements that certain blockchains have been adopted by mainstream companies, or incredibly bullish market analyses by crypto influencers; just to name a few. Please note that although many people use these as indicators, there is no evidence to suggest that any of these are credible indicators. 

Blockchain Adoption: 

In the eyes of blockchain purists, a bull run could be greatly dependent upon underlying technological advancements, and an increased adoption of cryptocurrencies and its underlying technology.

This is more of a fundamental analysis approach.

Institutional Investment:

Last but not least, large institutional investments into the cryptocurrency market can signify a level of maturity and stability that some analysts may see as the start of a bull run, or the prolonging of one.

Suffice to say, whilst most people would view a bull market as a sustained increase in price across a significant number of cryptocurrencies, the indicators above show that not everything is black and white, and that there are many different variables which could potentially indicate that a bull run might be happening.  

When is the Next Crypto Bull Run

Now the question that every crypto enthusiast wants the answer to — when is the next crypto bull run?

Whilst it would be easy to provide an arbitrary Bitcoin price prediction for next year, or give a subjective outlook on when the broader market will enjoy sustained growth, the fact of the matter is that it is impossible to make foolproof predictions for bull and bear markets. 

However, this hasn't stopped some crypto influencers and media outlets from purporting to know when the next bull run will happen, and giving extremely optimistic price predictions. But as mentioned above, given how there is no infallible recipe for predicting future price action, these predictions are not only untrustworthy, but incredibly irresponsible; seeing how people invest money based upon what they say. 

A more sensible approach is to acknowledge that although there is no way to know what the future holds for the crypto space, there are certain indicators that can possibly help people to anticipate a potential bull market. Below are two upcoming events that some people believe could be early indicators of a possible bull run in 2024. This is not an endorsement. There is no foolproof method for predicting the future performance of the crypto market, any indicator should still be considered as speculative.  

Bitcoin ETF 

Historically, the broader crypto market has tended to flourish or suffer depending on Bitcoin's performance. For this reason, developments surrounding BTC has perhaps been the most closely watched thing by speculators who are looking for potential bull market indicators. One closely followed development has been news of a Bitcoin ETF possibly gaining regulatory approval. According to Galaxy's Michael Novogratz,  the reason why this is an exciting sign for some investors is because a regulated spot bitcoin exchange-traded fund could result in billions of dollars flowing into Bitcoin ETFs each year. Novogratz has since followed up by saying that a regulated Bitcoin ETF could result in BTC reaching its all-time-high again ($65,000 in November 2021).

Bitcoin Halving

Another closely watched development has been the upcoming Bitcoin halving event. A Bitcoin halving happens every four years, and is when the cryptocurrency reduces its mining rewards. This decreases the rate at which new Bitcoins are created, and as a result of this, some people believe that this new scarcity can lead to an increase in the price of BTC due to a higher demand.  

This event is closely watched by investors and enthusiasts alike, and most believe that this can have a big impact on the broader cryptocurrency market.

Tips For Preparing for The Next Bull Market

Because there is no foolproof way to identify when a bull run will happen (and to what extent), providing speculative predictions is more likely to do more harm than actual good, therefore making this is a highly irresponsible thing to do. What can be provided, however, is advice on how to best prepare for the eventuality of a bull market.

Below are 4 tips that could help you to prepare for the next bull market:

This is not an endorsement. There is no foolproof method for predicting the future performance of the crypto market, any indicator should still be considered as speculative.  

1) Historical Research 

The first thing you can do is to analyse previous crypto bull runs. Although there is no evidence to suggest that this is a credible indicator, some believe this exercise could potentially provide some insights into patterns and timings which could indicate that a bull run is near. This can include looking at things that triggered (or coincided with) past bull runs, how long they lasted, and how certain cryptocurrencies reacted. You could also weigh up past global economic and technological, and see whether this correlated at all with previous bull runs. 

2) Fundamental Analysis 

Another thing that some people could use to prepare for a potential market boom is fundamental analysis.

This involves analysing cryptocurrencies based on their intrinsic value, which involves looking at a project's whitepaper, tokenomics, underlying technology, and partnerships. Looking at these things, and understanding how they create value for a cryptocurrency can potentially indicate strong growth potential; and therefore, potential picks for a major bull run.

3) Exchange/Platform Research

It may be worthwhile conducting research into optimal exchanges and trading platforms. This is to ensure that things go smoothly and efficiently during a potential bull run. Things to consider include weighing up a platform's transaction fees, ease of use, security features, liquidity, and the amount of  cryptocurrencies that are available. 

4) Tax Planning

Last but not least, because cryptocurrencies are subject to taxation in many jurisdictions, it is important to prepare for the possibility of having to pay tax on any gains made during a bull run. 

Crypto tax can be quite complex and time consuming, so it is advisable to consult with a tax professional who has knowledge of crypto taxation before any potential bull run. Moreover, be sure to keep detailed records of your transactions and asset types, as doing this close to the end of the tax year can be very time consuming and stressful.

Will There be Another Crypto Bull Run?

So, will there be another crypto bull run?

The truth is that there is no way of knowing for sure due to the crypto space being highly volatile and unpredictable. But this hasn't stopped many people from firmly believing that another bull run is not a matter of it, but when.

However, even though past performance is not 100% indicative of future results, there is indeed a growing interest in crypto, and a regulated Bitcoin ETF could indeed bring about much more institutional investment and attention to the crypto market; which in turn could potentially have crypto seen as a legitimate asset class, therefore increasing the likelihood of a future bull market. 

But as with any investment, there are also risks, so it's important to do thorough research in order to make well-informed decisions. 

What you choose to do next is entirely up to you. Best of luck moving forward!

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