Is Liquidity the Key Factor?

A recent post on X by a crypto expert, Michael van de Poppe, raised an interesting question for the crypto community. The question urges investors to consider whether they should focus on the liquidity element or the historic crypto market cycle pattern. It is definitely a tough choice for an investor to make. The analyst also mentioned positive indicators for the future growth of the Altcoin market. Let’s dive deeper into the story. Ready?

Will Liquidity or the Four-Year Cycle Drive the Next Crypto Peak?

After emphasizing the importance of waiting for a major bull run in crypto trading, Michael posed a critical question to the crypto community: Will liquidity or the four-year cycle drive the next crypto peak?

In investing in #Crypto, you’re basically waiting for that big run to hit.
The question is: will we have a four-year cycle peak next year or is it depending on liquidity?
In the latter case, it might be a very understandable situation that we’re having a prolonged bull.
— Michaël van de Poppe (@CryptoMichNL) October 20, 2024

The Four-Year Crypto Cycle Pattern Explained

Whether considering Bitcoin or Ethereum, the crypto market usually performs better in the third year of its four-year cycle compared to other years. In Bitcoin, the market recorded a +5,435% return in 2013, and a +1,369% return in 2017. For Ethereum, the market reported a +9,380% return in 2017. Considering the trend, there is nothing wrong in expecting a massive uptrend in the third year of the present cycle: 2025. The Bitcoin and Ethereum markets registered returns of +155.4% and +90.8% respectively in 2023. This year, so far, Bitcoin has marked a return of +63.5%, and Ethereum has achieved a return of +20%.

What If Liquidity is the Key Driver?

The crypto expert pointed out the possibility that liquidity could become the key driver for the growth of the crypto market. He suggested that if liquidity is the dominant force, it is more likely that we will see a prolonged crypto bull market, rather than a sharp peak.

Is the next Altcoin Bull Run near? What Expert Says

Michel predicted that a bull run will begin in the Altcoin market soon, marking the end of the current bear market – the longest ever experienced.

This is the longest #Altcoin bear market we’ve experienced.
Longer than the 2014-2016 period and you’re still here.
That’s great, as the bull market is around the corner and this will likely exceed your expectations.
— Michaël van de Poppe (@CryptoMichNL) October 20, 2024

The total market cap of cryptocurrencies, excluding the top ten cryptos, was around $223.989B. It slipped to a low of $204.994B on October 3. Since October 10, it has been climbing consistently. Yesterday, it touched a peak of $232.639B. In the period between October 10 and 20, the market experienced a surge of at least 11.92%.

In short, the crypto expert’s latest insights suggest a turning point for the crypto market. Whether driven by liquidity or a cyclical trend, the upcoming bull market could offer significant opportunities for crypto investors. Notably, Michael’s post encourages investors to pay close attention to the Altcoin market.

Also Read :
Why Is Ethereum Price Up Today? Is Strong Whale Demand Fueling the Surge?
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Source: https://coinpedia.org/news/crypto-bull-run-on-the-horizon-is-liquidity-the-key-factor/