The sudden end of the last bull market left the cryptocurrency world bleeding since then. At this point the markets have calmed down and stabilised. But what’s next? Will we see the bull market return and where will it take us?
I want to explore a few possibilities which could send the cryptocurrency and blockchain ecosystem to new heights.
Where we are now
Let’s be honest: Not much is happening right now in crypto. Many strong coins like ICON and ZRX are pushing out big news with little effect. Coinbase and other companies are developing rapidly without much impact. Volume is still low and price is rather stable.
Being in crypto for a while it’s clear that this is just the calm before the storm. Crypto is not dead, it’s just another hibernation phase after a very strong bull market.
There have been incredible amounts of money flowing into the crypto space in the last eighteen months. Most of this money is on the sideline, waiting for a strong signal. Once this money starts floating back into the markets we will see a steep liftoff and the beginning of the next bull market.
All that’s missing is the initial push to get the game going. So the big question is: What will trigger the next avalanche?
The Top Candidates to Trigger the Next Bull Market
A New Margin Pump
Much has been said about Tether (USDT) but there are many indicators that it had been used to margin-long the market, creating an incredible bull market and strong FOMO for the mainstream audience. With Tether being on the watch list of so many people, I’m not convinced Tether alone will have the strength to trigger the next bull run. Luckily there are more and better ways now to margin-long the crypto market. One of such is the b0x project. It’s simple, secure and effective. b0x has the chance to open the gates for a new rally triggered by margin-longs avoiding many of the risks Tether has created. It’s secure and decentralised, so less risk and more opportunity for big players to throw their weight into the game.
Institutional Investors Incoming
“The Herd Is Coming” has become such a popular meme that it’s hard to ignore now. What’s missing to turn this meme into reality? Very little in my eyes. It has been extremely difficult for institutional investors to enter the crypto space. The services required for such investors are just not here yet. With the first trustful and certified custodian services coming out from both Coinbase and Fidelity, one big pain point can be scratched from that list.
Another issue for big investors is the actual trading platforms available. Apart from Coinbase there is no exchange even remotely capabale of handling institutional investors. Bakkt is the magic word that might change this. The owner of the New York Stock Exchange is working on a solution for trading digital assets with the prime focus on cryptocurrencies. This is an absolute game changer and unlike the existing Bitcoin futures the exchanges will deal with the actual currencies, therefore creating real demand. Even if only a few big funs invest 0.5% of their assets into cryptocurrencies this could mean an insane explosion of liquidity and of course – price. The launch date of Bakkt is already confirmed to be December 12th. Surely we will see some movement before the go-live date.
“Killer dApps” are Finally Being Released
From day one many voices in the various crypto-communities demanded real-world usage of the currencies. In the last years many dApps were funded via ICOs but so far there has been little to show. But finally the tide is turning. With the Brave becoming one of the fastest browsers with great privacy-focused features the adoption rate has already hit over 4 million active users. Brave has become my only browser on mobile for a long time and there’s no looking back. If you have not tried it yet yourself you should do so soon.
There are other projects which manage to reach completely new communities outside the tech sectors. Chiliz (CHZ) has partnered up with some of the biggest sports teams in the entire world. Paris Saint-Germain: 56 million followers on social media alone. Juventus: 180 million supporters all across the world Those Fan Token Offerings (FTOs) have made waves in the biggest news outlets in the world. Let this sink in for a second. This is just the very beginning of the project and they managed to reach over 236 million of sport fans all over the world. There is just nothing more to add here.
Let’s Sum It Up
I have discussed three very interesting triggers for the next bull market. Granted there are many more which could spark the flame, maybe one nobody considers right now but in retrospect it will be obvious. The future for cryptocurrencies is bright and rightfully so.
The night is darkest just before the dawn.