Why Could This Crypto Bull Run Be Different?

Why Could This Crypto Bull Run Be Different?

Why Could This Crypto Bull Run Be Different?

Jan 28, 2025

2025 Crypto Bull Market is Different
2025 Crypto Bull Market is Different

Crypto bull-runs – this is a term that every serious crypto investor has heard of. It is definitely not a new phenomenon in a market that is no stranger to volatility and dramatic shifts. However, the current crypto market bull run has sparked conversations about how it might be different. There is some truth to this, as many experts have pointed out the differing characteristics between previous bull runs and the one, we are experiencing now.

Old Coins vs New Coins

The first thing that has caught the eye of many experts and analysts is the circulation dynamics of older versus newer coins. It is a fact that the old guards of the crypto world – Bitcoin, Ethereum and Litecoin have a substantial amount of their total token supply in circulation.

This stability is incredibly appealing!  But on the flip side, this high circulation can put a limit to how much they can grow. Yes, these traditional cryptocurrencies might see their prices double or triple. This is impressive, but it’s nothing earth shattering.

This is radically different than newer coins. These come with lower circulation supply and, you guessed it, untapped potential!

As adoption grows, investor focus can shift towards these newcomers, making them a magnet for high-return seekers.

Institutional Involvement – Why Does it Matter This Time?

The role of institutional investors in this crypto bull run has been a game-changer. It has brought a level of gravitas to the market - the likes of which we haven’t seen before. Unlike previous surges, which were generally led by retail enthusiasm, there are hedge funds, pension funds, and corporations involved this time around.

Notable mentions include BlackRock, (filed for a Bitcoin spot ETF), Tesla (invested $1.5 billion in BTC), MicroStategy (invested over $3 billion in BTC), Square (now Block, Inc. which invested $50 in BTC), and Fidelity, which introduced Fidelity Digital Assets.

Cryptocurrencies which attract institutional investors are considered “established”, adding much-needed stability and legitimacy in the crypto market. The larger trend of institutions flocking towards crypto reflects a cautious yet committed approach, which is definitely something different.

“Old” Coins are Surging Ahead of “New” Ones

It’s a fact that there has been an influx of institutional money in the crypto market. Older cryptocurrencies like Chainlink, Dogecoin and Aave have shown that they can still deliver impressive returns. All of the aforementioned cryptos have experienced significant price surges during this bull run. What made it possible? – their already established presence in the market and the backing of institutional investors.

But something is different in the case of this bull run – while the old coins are performing well, the newer ones aren’t seeing the same level of growth.

Many point to the cautious approach of institutional investors this time around, who generally go for the relative safety of established cryptos like Bitcoin over newer ones.

So What Makes This Bull Run Different?

This time around, it’s not just retail traders fueling the fire!

The main thing different about this year’s bull run was the involvement of institutional investors.  They brought a much-needed sense of stability and seriousness to the crypto domain. Their love for the older coins has increased their value exponentially, while newer cryptocurrencies are struggling to keep up.

However, many analysts also think that this shift can change the landscape for good. Regulators can push for tighter transparency and security, since deep=pocketed players are entering the market.

It will be interesting to see how these dynamics play out as the market evolves. Will institutional investors go for newer coins, or will they continue to back the established ones?

While no one can predict the future with certainty, one thing is for sure – this is a different bull run, the likes of which we haven’t seen before.

Final Thoughts

This crypto bull run is like a battle between the veterans and the newbies with institutional investors calling the shots. The seasoned coins, with their high supply, might not have much room to grow, but they’re still cashing in big time, thanks to the influx of institutional capital. Meanwhile, the shiny new coins, brimming with potential, are sitting on the sidelines, waiting for their turn. They’ve got the promise, but not the same attention or price bump just yet.

Solus Finance has partnered with TradingView for its charting technology. A comprehensive trading and investing platform offering valuable market insights, analytical tools and financial news to track Bitcoin USD and many others.

All systems normal

© 2024 Solus | An ITU Global Financial Inc. Company. All rights reserved.

Solus Finance has partnered with TradingView for its charting technology. A comprehensive trading and investing platform offering valuable market insights, analytical tools and financial news to track Bitcoin USD and many others.

All systems normal

© 2024 Solus | An ITU Global Financial Inc. Company. All rights reserved.

Solus Finance has partnered with TradingView for its charting technology. A comprehensive trading and investing platform offering valuable market insights, analytical tools and financial news to track Bitcoin USD and many others.

All systems normal

© 2024 Solus | An ITU Global Financial Inc. Company. All rights reserved.

Solus Finance has partnered with TradingView for its charting technology. A comprehensive trading and investing platform offering valuable market insights, analytical tools and financial news to track Bitcoin USD and many others.

All systems normal

© 2024 Solus | An ITU Global Financial Inc. Company. All rights reserved.

Solus Finance has partnered with TradingView for its charting technology. A comprehensive trading and investing platform offering valuable market insights, analytical tools and financial news to track Bitcoin USD and many others.

All systems normal

© 2024 Solus | An ITU Global Financial Inc. Company. All rights reserved.