Cryptocurrencies have been going through a brutal selloff this year, with market leaders like Bitcoin losing more than half of their value. Investors have been wondering when the next crypto bull run might happen.
The answer depends on a variety of factors, such as regulatory concerns, geopolitical issues and off-chain factors. A bull run can last anywhere from a few months to years.
1. China’s return
While crypto investors are still hodling tight during the most brutal wait-and-see phase of the bear market, emerging regulatory clarity in China could soon trigger a crypto bull run. Gemini President Cameron Winklevoss recently hinted that the next crypto bull run will start in the East.
Meanwhile, macro analyst and crypto influencer BitBoy, popularly known as Ben Armstrong, warned that Chinese investors are preparing to take over the crypto world. He believes that Chinese regulators will soon offer friendly crypto policies, which would spur a crypto revolution in Asia.
In addition, China’s autonomous special administrative region – Hong Kong – aims to legalize cryptocurrency retail trading and become a global crypto hub. Its ambitious plans to become the center of crypto innovation could also fuel a new crypto bull run.
According to a recent Bloomberg report, Hong Kong’s securities regulator is expected to allow retail investors to trade bitcoin, ethereum and other major digital assets later this year under a new crypto exchange licensing regime. However, Hong Kong’s plans still need to be approved by China first.
2. Central and Southern Asia and Oceania
The next crypto bull run may well be in Central and Southern Asia and Oceania (CSAO), a group of countries that includes India, Thailand, Vietnam, Australia, Singapore, the Philippines and Indonesia. CSAO is home to seven of the top 20 countries in Chainalysis’ crypto adoption index, and citizens of these regions received $932 billion in cryptocurrency value during the period July 2021 to June 2022.
Cameron Winklevoss, an American investor and co-founder of the Gemini exchange, recently tweeted that he believes the next crypto bull run will start in Asia. His comments came as US regulators, including the Securities and Exchange Commission, stepped up enforcement actions and threatened crackdowns on cryptocurrency businesses.
Winklevoss’ opinion is supported by Arthur Hayes, former CEO of BitMEX, who argued that Hong Kong could become a testing ground for Beijing to experiment with cryptocurrency markets and act as a hub for Chinese capital to find its way into global crypto markets. Earlier this year, Hong Kong’s financial secretary Paul Chan revealed that lawmakers passed legislation in December to establish a licensing system for virtual asset service providers. This has led to speculation that a surge in utility tokens from Asian focused exchanges could be the result of these regulatory relaxations.
3. Hong Kong
Hong Kong, a special administrative region (SAR) of China, is a major global trading and financial centre. Its cosmopolitan setting and unique mix of East and West has influenced global development since its handover to Chinese control in 1997.
The territory’s government structure is based on the British model, with separate executive, legislative and judicial branches. It is governed under the “one country, two systems” arrangement in which the Hong Kong government operates independently of mainland China in most matters except foreign and defence affairs.
Its judicial system is based on the English common law system, which continues to be used in most cases. It also has a new national security law (NSL) that allows police to prosecute anyone charged with secession, subversion or terrorist activities.
The NSL also allows local authorities to seize property and assets of people involved in terrorism or subversion, which has led to the dissolution of several groups. The Alliance in Support of Patriotic Democratic Movements of China, for example, was charged under the NSL and had its membership dissolved.
A crypto bull run happens when the price of a specific coin or token rises rapidly. It can happen suddenly or over a long period of time.
While Bitcoin has remained the leading coin for years, there are many other cryptocurrencies that have gained prominence in the market. These include specialized coins that represent specific projects, solve problems or are eco-friendly.
Cardano is one such cryptocurrency that has made a name for itself in the market. It has a proven technical foundation and ambitious ambitions to become the next Ethereum killer.
It also benefits from a peer-review system that scrutinizes its development to ensure that it delivers only the best solutions. However, critics argue that this can slow it down and cause it to fall behind other smart contract platforms.
In addition, it has worked closely with governments to convince them that cryptocurrencies are safe and will not affect the global economy negatively. This strategy has earned it a loyal following in many parts of the world and could come in handy as governments try to regulate cryptocurrencies.