What is happening in the cryptocurrency space in a layman’s language?

Estimated reading time: 3 minutes

Since the early hours of Monday, the cryptocurrency space has been experiencing a kind of bull run which is causing the prices of coins to skyrocket!

People are becoming millionaires overnight with this phenomenon. Even the world’s richest man, Elon Musk has his net worth increased by tangible billions. Crypto traders and investors are eating it big. Bitcoin is almost N150 million from being almost N130 million a few days ago.

What is a bull run?

Just like the name implies, it is a wild progression of the market price. Just like a bull runs fiercely and wild, this phenomenon is also similar to this.

A bull run in the cryptocurrency market refers to a period of sustained price increases across various cryptocurrencies, I’m talking various coins, tokens, NFT’s and more. During a bull run, the overall market sentiment is optimistic, and investors are generally buying cryptocurrencies in anticipation of further price appreciation. This can lead to significant price increases, sometimes even reaching new all-time highs.

A bull-run is basically due to various factors. For example, market sentiments, favourable regulatory environment, technological advancements, halving events and a lot more.

Just as a bullrun exists, there is also its opposite, known as bear markets. Bear markets are periods of decline where the value of cryptocurrencies decline significantly. It is every investors responsibility to reduce trading during bear markets as cryptocurrency market becomes highly volatile, a little more than usual.

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A couple of integral factors that are accountable for the current bull run in cryptocurrency market prices in 2024 are highlighted;

The underlying factors:

●A major influence in recent times has definitely been the influence of Social media. Social media platforms like Twitter and X (formerly Twitter) play a significant role in shaping market sentiment and driving price movements.

●Some sentiments around Economic uncertainty has also been a major factor. In times of economic uncertainty, investors often turn to cryptocurrencies as a potential hedge against inflation and market volatility.

●Some countries have implemented clearer and more supportive regulations for cryptocurrencies, reducing uncertainty and encouraging investment.

●Pro-Crypto Governments: Governments around the world are recognizing the potential of blockchain technology and cryptocurrencies, leading to more favorable policies.

●And finally we have Blockchain innovations.Continuous advancements in blockchain technology are opening up new possibilities and use cases, attracting developers and investors.

While these factors listed above are only but a few of the many factors that could be responsible. Ensure to always monitor the market as an investor as the crypto market is highly volatile and no one csn be held responsible incase of a bad trade.