The year 2022 proved to be a demanding period for cryptocurrencies, with the hardest days seemingly in the past. Bitcoin’s price has remained above $20,000 for a long period, and we have gained a deep understanding of this critical level’s significance during the last quarter of 2022. Yet, negativity is being fuelled in the markets. So, should investors be worried? What will be the signal of a crypto bull run?
When Will the Crypto Bull Run Start?
Revealed in the latest market update by popular analyst InvestAnswers, followed by hundreds of thousands of investors, the supply of BTC on exchanges is decreasing while all other fundamental metrics of Bitcoin are on the rise. An increase in outflows from exchanges points towards long-term investors beginning to accumulate BTC, a development viewed as a bullish signal.
“We now have addresses with more than one Bitcoin – over one million of them. Of course, many people have five or more wallets, which does not mean there are a million people owning a full coin, ladies and gentlemen. There will never be more than 330,000 people owning a full coin. Yet, this is an interesting statistic to observe. And the supply that has been active for more than a year is still trending upwards. So the fundamentals are exceptionally strong. The price of Bitcoin has not yet reflected what exactly is happening when you compare these charts with traditional situations.”
According to the analyst, Bitcoin does not yet send bull signals, and a parabolic rise is not expected in the medium term.
The Latest Status of Cryptocurrencies
The last factor triggering a downturn in the markets was the delay of the U.S. debt ceiling agreement. Investors sold their assets due to default risk and fear of a market crash, and they are not entirely unjustified from this perspective. However, the previous two debt ceiling agreements were made at the last minute, and the same is expected this year ahead of the upcoming elections. Both sides will continue to unveil their hands until matters get serious, as they have turned the problems of the current economic system into a tool for political propaganda.
Democrats accuse Republicans of driving the economy into bankruptcy, while the latter blames the current administration for failing to manage the economy and take necessary measures.
The debt ceiling agreement, expected to be announced in the coming days, could reverse the negative atmosphere in the short term.
