Bull-runs are always welcome in the crypto space, for the profits and sentimental value it provides. Most of the times there is something big behind it propelling investors to act in a coordinated manner, while sometimes the market simply starts to elevate the confidence of investor from no apparent reason and builds on it. Positive momentum can be quite a force and before you know it the entire space is moving around confidently.

We have had quite a number of rallies and dips that the meaning these days seems lost in translation. In order words, with the frequency that they operate by, people quickly forget them or do not seem to care after some time. It may not be possible to remember the reason behind every major rally anyways, so what most crypto enthusiast do is take note of its significance.

I talked about bouncebackability being one of the more significant traits of most valid crypto projects for instance, and the ability to recover is something that has many investors willing to play the long game. The more significant a rally is of course, the greater the long term prospects.

A little over a week ago the space was a significant dip over yet another crypto friendly bank collapsing. It seemed like the misfortunes of last year with crypto friendly companies would persist, bringing the entire markets to a halt. I don't know about the former, but the latter certainly had an effect as the markets did react negatively. Then, a breakthrough.

Victory Premise

We are primed for a global recession this year and major powers round the World are scrambling to avert that, or at least mitigate its effect. We have all seen the effects of the 2008 Banking crisis and Covid, and they (regulators) have certainly taken note of consumer behavior. After all these events only increased criticism of traditional financial systems which the regulators have large control over.

Crypto in itself was a byproduct of this so regulators have been working overtime to give the sense of stability which the traditional system has always sold. This prompted an intervention into those failing banks, assuring investors the safety of their deposits. What did they (investors) do next? They go ahead and buy Bitcoin.

Conclusion

Indeeed why this is a victory is that many investors are running to the crypto space as a safer hedge than the banks, incase of a potential crisis. That is a huge win for us in the space, as many investors are confident about Bitcoin in the long term (Bouncebackability, and not security). We certainly have interesting times ahead.