The Network Effect On Crypto

Cryptos been in a bear market for a while now. What started with the crash in July of 2022 we are now over a year into what many would consider a bear. But has it really been all that long and is the bear market really over?

It's clear that $BTC has hit and held some decent highs but it's still floating at 25k - 30k levels with no real massive upturn or down turn.

If we look at the last few years of bitcoin we can see the last rally compared to the more recent one.

By this chart alone it seems like we will be in one for at least another year meaning crypto doesn't stand a chance for a rally until some time next year. Of which might come sooner than later.

2024 is going to be an interesting year as there's many things currently going on with crypto and the US government.

The Halving

Currently targeted for the almost mid part of next year is the BTC halving event which is currently 240 days away.

However from what we have seen in the past BTC halving event has always been priced in a good year before it took place meaning this currently 25k level is most likely the leveling for the BTC halving.

When the halving takes place we normally see a small bump and then a hard sell off which would push us between the 22k - 25k levels. So I'm not betting hard at all on BTC halving having any effect towards the bull run and that it's already been priced in.

Elections

Elections at least in the USA haven't played a big part in BTC adoption and value. However 2024 might be a new story. With the USA elections taking place in. This election however will not take place until November 5th 2024 so we are still a little over a year away. (But take note that the bull run is so far set for this time frame as well if you look at the history of the BTC chart)

The interesting thing about the 2024 election is it seems crypto very well might be a hot topic in which Democrats are betting to ban and restrict it while Republicans seem to be more open and accepting of it.

The Hash Rate

Even with the so called bear market we are in the hash rate for all cryptos especially bitcoin has by skyrocketing. With the next halving and other aspects of crypto coming into effect in 2024 it's starting to look like we might get a bull run end of 2024 and no time sooner.

With that being said we can see that companies and people are trying to now mine as much of BTC from the little that is left which is going to put some rather harsh straining on BTC liquidity.

Lightning Network

I started using the lightning network myself and helping to contribute to it way back in 2019 via a casa node. However the network at the time was very rarely used if ever. But that seems to be changing now in a big way as large companies including X have been heard saying they will be using the BTC lightening node for transactions.

The lightning network, elections, X, Spot ETF, BTC halving and all of these things are bullish for crypto and are often over looked as it's a rather slow process for many of these. However it does look like the network effect is taking roots and crypto is actully in a very good place. The major thing holding it back from exploding right now seems to be the constant SEC attacks on it and government sentiment not wanting it to become a thing.

Posted Using LeoFinance Alpha