Long Beach (CoinChapter): The cryptocurrency market is in the midst of a massive bull run that has seen increased institutional investment. This is one of the longest bull runs for crypto, but what exactly is driving it isn’t quite clear. eToro CEO Yoni Assia has thoughts on the potential factors as he revealed in a recent interview with Cointelegraph.
“I think there is a confluence of circumstances that’s leading for this all-time high, both in crypto, as well in the stock markets. We’re seeing unprecedented monetary and fiscal sort of reactions from federal governments all around the world leading to zero interest rates, and even negative interest rates in some places.”
A bull run of this magnitude is sure to draw comparisons to the 2017 run. But this run looks to have more room for upside. One metric that suggests this is the Long Term Holder MVRV. It currently sits at 10, which is half of the 2017 level. Since there is room for upward growth on the charts right now, the price is likely to cross its ATH again and go on a discovery run.
The Current Crypto Bull Run Began in March 2020
This bull run began around a year ago following Bitcoin’s drop to below $4,000 in March of 2020. Since then, the crypto market has exploded with Bitcoin reaching a milestone of more than $60,000. eToro CEO Yoni Assia brought up the amount of money being printed around the world as a factor in this as well.
“We’re seeing an unprecedented amount of money being printed by governments all around the world. Some of them in a very unique and new concept of direct stimulus checks to consumers,” Assia said. “That has definitely raised the biggest discussion in human history about the value of money, a discussion that started very passionately within the crypto space.”
Among other factors mentioned by eToro CEO Yoni Assia were the network’s inherent scarcity. Bitcoin has a maximum supply of 21 million coins, though not all have been distributed yet. Eventually there will be no more coins entering circulation. He also noted that crypto and stock purchases are now more globally available to retail buyers. This could lead to mass scale involvement from people who may not previously have participated.
The 2017 cycle relied more on supply and demand metrics on spot exchanges. There was a steady increase of Bitcoin supply on exchanges with a price rise. But there hasn’t been a dramatic increase in supply or the price level of this current run. As such, there seems to be a lot more to this bull run.