Signs of a bull market: Are cryptos ready to take off?

In 2021, cryptocurrencies as a whole exploded the market counters in terms of valuation. Since then, the performance of the crypto industry has not reached a similar level. However, several experts are anticipating an end to this period of drought.

Delphi Digital sees the end of the crypto bear market period

In recent years, cryptos have not been as profitable as investors had hoped. Many of them are even talking about a bear market. A misnomer that is undermined by data from a recent study.

Nevertheless, many experts are hoping to see cryptos reach new valuation peaks. For some of them, there are even signs that such a prospect could materialize.

Kevin Kelly, co-founder of Delphi Digital, is among those who think so. Based on the dynamics of bitcoin, he postulates that the crypto market displays a cyclical and predictable behavior.

Cette tendance aurait, selon lui, des implications profondes pour la trajectoire de l’écosystème des cryptos. Celui-ci montrerait, explique-t-il, des signes de l’imminence d’un marché crypto haussier.

“Rising evidence suggests that we are in the early stages of a new cycle. Risk assets such as stocks and cryptocurrencies have been sensing this throughout the year,” he said.

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Signs of growth based on recent market developments

If Kevin Kelly sees the crypto industry on the cusp of a bull run, it’s because of the possible approval of a Bitcoin ETF. Such a breakthrough would catapult crypto prices to new heights.

This projection is supported by the Federal Reserve’s (FED) halt to its frantic interest rate hikes. A dynamic that suggests the beginning of an improvement in US economic conditions. According to him, when the economic cycle starts to improve, so does the crypto market.

This data would therefore confirm the growth potential of the crypto market. But it’s not the only one to point in this direction. “Inflection points in the economic cycle have always been ripe opportunities to increase risk exposure,” he added.

Another signal from technical analysis is also mentioned. “BTC value spikes tend to converge with peaks reported by the Institute for Supply Management (ISM). Milestones such as active addresses, aggregate transaction volumes and cumulative fees have historically aligned with ISM peaks,” the boss pointed out. The halving scheduled for 2024 is also a historic driver of crypto prices.