In a remarkable turn of events, Bitcoin has surged to $50,000 for the first time in two years, marking a significant milestone. Since closing below $48,000 in December 2021, the index cryptocurrency, Bitcoin, hit a low of $16,000 in December 2022, before embarking on a journey of recovery in Q1 2023.

From March to October, it consolidated between the $25,000 and $30,000 regions, gaining stability before initiating a gradual upward trajectory. After breaking through the $40,000 resistance in December 2023, Bitcoin has now crossed the $50,000 threshold in February 2024.

The year 2024 commenced on an exceptionally bullish note for Bitcoin, showcasing an impressive gain of over 100% in just four months. This surge not only signifies a robust start to the year but also confirms the onset of a new bull market that holds the potential to extend throughout the year. Following a bearish trend that persisted from November 2021 to December 2022, the emergence of a new bull market was long overdue, and investors are eager to capitalize on the refreshing dynamics within the crypto market.

In this article, we delve into the pivotal factors steering the 2024 bull market, providing valuable investment insights to guide individuals seeking to capitalize on this promising bullish run.

The Primary Narratives Driving The 2024 Bull Market

Investor perception and market direction are intertwined, as narratives and trending conversations are pivotal forces that shape the trajectory of investments.

The crypto market, like other financial markets, is heavily influenced by the stories that gain prominence within the community. When a multitude of compelling narratives converge to support the notion of a new bullish run, it becomes a powerful catalyst, steering investors' collective psyches in a direction that supports putting money in the market. So, as investments surge, the crypto market inevitably gains momentum.

Below are some of these key narratives.

BRC-20

BRC-20 is a new, experimental token standard that allows the minting and transfer of fungible tokens via the ordinals protocol on the Bitcoin blockchain, akin to Ethereum's ERC-20 standard but with slightly reduced functionality.

The first BRC-20 token deployed was called ORDI, short for ordinals. It is currently trading at over $64 per token and has produced significant returns for investors in the last few months.

According to coinmarketcap.com, over 60 tokens in total have been deployed on the BRC-20 network, and while the token standard is still experimental, more time is needed to determine the impact of deploying other fungible tokens on the Bitcoin blockchain.

Despite still being experimental, the idea of the possibility of launching tokens on Bitcoin’s native robust infrastructure is a very bullish narrative, and with less than 100 active tokens on BRC-20, there is more than enough room to attract investors as an untapped sector of the crypto market.

Bitcoin Halving

Bitcoin halving is a crucial event that occurs approximately every four years. During this event, the rewards miners receive for validating transactions and adding new blocks to the blockchain are halved. The process is hardcoded into Bitcoin's protocol and is designed to limit the total supply of Bitcoin to 21 million, fostering scarcity.

With BTC tokens even more scarce, they become more valuable to own, which inevitably raises the price. This has been the case in previous halving events that occurred in 2012, 2016, and 2020. In each instance, the reduction in mining rewards has coincided with a surge in Bitcoin's price, leading to new all-time highs. The demand for Bitcoin typically increases in the wake of a halving event, primarily due to reduced supply entering the market. As the supply-demand dynamics shift, the price of Bitcoin tends to experience an upward trend.

With the next Bitcoin halving anticipated in April, there is speculation that it could follow a similar pattern. The historical precedent indicates that the impact of the halving may take some time to materialize, often resulting in a bull market and new all-time highs approximately 6–9 months post-halving. This projection aligns with a potential surge in Bitcoin's price in Q4 2024 or Q1 2025.

Bitcoin ETFs

Exchange-traded funds (ETFs) have been long popular in financial markets, as they typically allow you to track and invest in a pool of assets, without necessarily trading the asset(s) directly.

Traditionally, this helps investors pool investments to assure them of more security, as ETFs can be sold and bought just like individual stocks. For example, the SPDR S&P 500 ETF, which tracks 500 assets on the S&P index, could be traded as one, helping investors to diversify their investments with just a single trade.

Bitcoin ETFs are a variation of the regular ETFs; they track the value of Bitcoin and allow investors to trade them in a traditional market, without having to sign up for a crypto exchange while still having the advantage of leveraged trading.

As a result, investors who are interested in gaining from the highs and lows of Bitcoin without actually owning the asset can enjoy ETFs, and this is one of the narratives that got popular in January 2024.

According to data from Google Trends, the search term peaked from January 9 - 13, which coincided with when Bitcoin crossed $48k (January 11), before finally crossing $50k in February.

What Next For The Crypto Market?

The crypto market is clearly in a bullish phase, with greed levels rising on the Fear and Greed Index. With the bull market gaining momentum and key factors driving the positive narrative still prevalent, now seems like an opportune moment to consider investments.

As always, it remains crucial to diversify your investments, adopt dollar-cost averaging, and focus on categories of cryptocurrencies poised for potential higher returns.

Explore promising crypto categories such as:

• Artificial Intelligence (AI) tokens
• Gaming Tokens
• DeFi Protocol Native Tokens
• Zero-Knowledge Technology Tokens
• Decentralized Storage Tokens
• Cross-chain platform’s native tokens

Investing in tokens in the above categories could see you amass huge gains in the crypto market, and benefit from the 2024 bull run.

End Note

It is safe to say that we are in a new bull season, and while greed is inevitable, it is paramount for participants to remain vigilant, diversify portfolios, and adopt prudent investment strategies.

Also, the importance of a secure crypto wallet cannot be underestimated. Your investments are only valid if they are secure. So, choose a custodial or non-custodial wallet from Cwallet today, and enjoy security borne from advanced encryption techniques, and secure storage, with a user-friendly interface and ZERO FEES!

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