The cryptocurrency market skyrocketed in prices this year with bulls projecting a bull run while critics say it could be a bubble. Both sides of the divide cite fluctuations in macroeconomic factors and crypto prices in the last five months. 

The crypto market is up this year after picking up from its previous bottom in 2022 due to industry explosions and regulation bottlenecks. At press time, the total market capitalization stands at $2.27 trillion with Bitcoin (BTC) dominance surging following an upward Q1.

Crypto Bull Run Is Here 

Crypto bulls point towards a run based on year-to-date growth in asset prices, related stocks, and overall finance market dominance. Last year, several bulls and market executives projected an uphill run following the anticipated ETF approvals and heightened institutional demand for the asset. 

After the approval on Jan 11, Bitcoin’s price soared to an all-time high above $72,000 as a new investment window was opened for investors. The surge triggered a rise in altcoins and memecoins. Bitcoin exchanges hands at $61,467 from $44,000 in December. 

The bull market has also seen a surge in institutional investment as big banks foster partnerships with crypto firms. Furthermore, the tokenization drive stressed the belief of most market bulls coupled with an increase in crypto venture capital investments. This year, VC funds have pumped money into new projects as expected in a bull market. 

Aside from Bitcoin, altcoins like Ethereum and Solana also show gains from Q4 2023 till date. Ethereum picked up gains due to anticipation for spot Ethereum ETFs while Solana also saw an increase in on-chain activity. 

Critics Say It’s Just a Bubble 

Bear traders opine a decline in crypto prices based on negative macroeconomic factors and previous fears. Pointing towards market hype, they opine that the frenzy will fizzle out with prices going to new lows. 

This expectation became higher as Bitcoin saw record outflows with its price plummeting below $63,000. The outflows and sharp corrections were seen across the market as many assets posted double-digit losses. Reduced institutional investor sentiment also points downward for most analysts.

Also Read: 3 Altcoins To Sell Amid Short-Term Market Correction 

The post Is This Crypto Bull Run Another Bubble? appeared first on CoinGape.

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