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There is a widely circulated saying in the cryptocurrency circle: "A big bull run is sure to come in 2025." This sentence seems to have become an inspiring slogan, giving people hope. However, we need to calmly think about the logical basis behind this prediction.
First of all, the Bitcoin halving cycle is regarded as an important indicator of the market. In April 2024, Bitcoin completed its fourth halving. Historical data shows that in the 12 to 18 months following the first three halvings, the market experienced significant increases. This pattern is taken for granted by some investors, but we should be cautious about the repeatability of this pattern.
Secondly, the macroeconomic environment and liquidity conditions have a significant impact on the encryption currency market. From 2022 to 2024, the Federal Reserve implemented a series of interest rate hikes. The market generally expects that this tightening policy may end between late 2024 and 2025, or even shift to easing. If that is the case, the increased liquidity may drive up the prices of risk assets, and the encryption currency market may react more violently due to its smaller market capitalization.
Third, the participation of institutional investors is increasing. The approval of the Bitcoin spot ETF in 2024 is seen as a milestone in the development of the industry, paving the way for more traditional financial institutions to enter the encryption market.
Although these factors provide some support for a potential bull run in 2025, we must remain cautious. The market is influenced by a variety of complex factors, and simply applying historical patterns or being overly optimistic may lead to investment mistakes. Investors should consider all aspects comprehensively and manage risks, rather than blindly following market expectations.