Bitcoin’s Meteoric Rise: Why This Bull Run is Different

The price of Bitcoin has increased by more than 50% in the last month ($35k), reaching all-time highs in 2023 igniting interest in the cryptocurrency world once more. But this latest bull run feels different. After the massive hype cycle of 2017 and subsequent multi-year “crypto winter,” the ecosystem today feels more mature. Institutional investors are piling in, big tech companies are getting involved, and mainstream media coverage is everywhere.

Bitcoin is an extremely volatile and speculative asset. There are no guarantees the price won’t crash again tomorrow. But if you’ve been following Bitcoin for some time, you have to admit that this time around, something seems different.

There is a sense that, after more than a decade, Satoshi’s vision of a “peer-to-peer electronic cash system” may come to fruition. With no signs of slowing down, Bitcoin has been on an absolute tear lately, smashing past all-time highs.

Attracting Institutional Investors

If you have been keeping track of the most recent bull run, you have undoubtedly noticed a few differences from the previous one. Institutional investors are finally taking Bitcoin seriously. Prominent corporations like Tesla, Square, and MicroStrategy have included Bitcoin in their balance sheets.

Furthermore, the mainstream acceptance of Bitcoin is happening at an astonishing rate. Newbies to the crypto space, have been flocking to Bitcoin in droves recently. Many were first exposed to digital assets through free stock trading apps like Robinhood. Now, they’re hungry to get into the leading cryptocurrency.

As Bitcoin’s market cap has soared past a trillion, institutional players can no longer ignore it. Pension funds, hedge funds, endowments, and more are allocating a portion of their portfolios to BTC to diversify their holdings and achieve higher returns.

Even though it is still very volatile, Bitcoin has shown over time that it can yield large returns.​ Despite several bear markets, Bitcoin has gained over 9 million percent since 2010. The combination of this long-term growth and rising stability is luring buy-and-hold investors.

What Does this Mean for New Investors?

Unlike the hype-driven mania of 2017, this bull run is built on real-world utility and adoption. For people looking to invest in Bitcoin, it is important to know the crypto market can be exciting but also risky. Learn how Bitcoin works before putting your money into it.

Understand Bitcoin’s value proposition and potential risks. Make sure you invest only money you can afford to lose. Bitcoin is very volatile, so the value of your money can go down as quickly as it goes up. Even if you believe in Bitcoin long-term, start with a small amount, to get familiar with how the market works before investing more.

While more mainstream acceptance and big money flowing in are bullish signs, regulation, competition, waning interest, and overheating threaten to end the party. The future remains uncertain, but the possibility of substantial additional price appreciation still exists if current trends continue.

While no one knows if the price will continue its record-setting pace, one thing is clear: Bitcoin has come a long way from its cypherpunk roots. What was once dismissed as a fad or a way to buy drugs online is now a trillion-dollar asset class. The opportunity for new investors to get in on the action and get rewarded is huge.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.