Another Bitcoin bull run is on the way
Bitcoin may well be on the brink of the next bull run, as the price on Wednesday surpassed the $8,000 barrier against the U.S. dollar following a period of low volatility.
Abandoning its characteristic volatility, Bitcoin has been oscillating within a $600 range for over a week. However, this all changed on Wednesday when the world’s largest cryptocurrency by market capitalisation advanced beyond the key $8,000 resistance level.
This could certainly be an indicator that Bitcoin is on the verge of the next bull run.
As we’ve seen over time with cryptocurrencies, periods of low volatility directly precede extended crypto bull runs.
Back in February this year, Bitcoin experienced a comparatively stable period, then the BTC price moved towards $4,200 in March then on to $9,090 before the end of May.
As such, should Bitcoin experience another bull run, it can be expected to give a boost to the wider cryptocurrency market, with other leading digital currencies including Ethereum, XRP and Litecoin also rallying.
As a general rule of thumb, volatility is welcomed by traders and investors as it can present significant buying opportunities and reap positive rewards.
That said, looking ahead, we will likely see less extreme volatility. Lower volatility is an indication of the maturation of the crypto market. It highlights how the sector is now viewed as part of mainstream finance.
Although volatility will undoubtedly return, as it does in all financial markets, I believe we’re seeing a fundamental shift and, on the whole, the cryptocurrency market will have less turbulent times in the future. This is crucial for the sector in the longer-term as it will further incite mass adoption and institutional investment.
Naturally, nobody knows for certain when the next cryptocurrency bull run will occur, but present relative low volatility implies it is imminent.
What is evident is that cryptocurrencies are the future of money.