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Author: Admin | 2025-04-27
Factors that are a positive feedback loop of increased optimism and increased value. To get a better understanding of how crypto bull markets happen, let’s take a look at some of the factors that influenced the 2020 bull market. Bitcoin halving: The Bitcoin halving in 2020 meant a decrease in the supply of Bitcoin and increased media attention on the cryptocurrency ecosystem. Inflation fears: As inflation skyrocketed during COVID-19, many investors became interested in Bitcoin — a cryptocurrency with a limited supply designed as an alternative to inflationary fiat currencies. NFTs: During the 2020 bull run, new technologies like NFTs came to the forefront. This drove a new wave of investor interest — as many artists and creators entered the cryptocurrency ecosystem for the first time. Low interest rates: Low interest rates during the pandemic meant that investors could no longer expect high returns from holding ‘safe’ assets like government bonds. As a result, many investors turned to ‘riskier’ investments like cryptocurrency and NFTs. Investor interest: It’s likely that many investors had more time to research cryptocurrency during the COVID-19 lockdowns. It’s usually difficult, if not impossible, to predict bull markets before they happen. Usually, analysts only recognize bull markets after they have already started. How long do bull markets last? The length of bull markets in crypto can vary greatly but have historically lasted from several months to over a year. Why do crypto bull markets turn into bear markets? Just as there are multiple factors that may cause
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