Crypto Markets: Comparing the 2017 Bull Run with Today’s Trends

A Journey Through Cryptocurrency History

Since its debut in 2009, the cryptocurrency world has seen its fair share of ups and downs, akin to a roller coaster ride without the safety bar. The crypto bull run of 2017 was a euphoric peak, with prices soaring and digital assets seemingly taking over the world — or at least causing a ruckus at Thanksgiving dinner!

Dissecting the Current Macro Landscape

Fast forward to today’s landscape, and it looks like the crypto space has traded in its motorcycle for a more stable family minivan. According to Pierce Crosby, the general manager of TradingView, the key difference now lies in how assets are distributed.

“In 2017, there was a disproportionate weighting in very few accounts, whereas now, the number of accounts has grown tremendously,” Crosby explained, emphasizing the change.

The Power of Accounts

As of now, major exchanges have exploded in user counts — for instance, Coinbase grudgingly avoids late-night talk shows but quietly boasts over 35 million accounts! In comparison, they had a mere 11.7 million back in October 2017. Yes, that’s right, a growth spurt comparable to a teenager at a buffet!

Institutions Entering the Arena

Another distinguishing hallmark between then and now is the rise in institutional ownership. Once viewed as the Wild West, crypto is now attracting big players such as Square and Microstrategy, flexing their Bitcoin muscles like it’s a new fitness trend. Crosby believes institutional interest serves as a strong pillar of support for prices, and that is definitely a workout we can all get behind.

Technology: The Backbone of Stability

Crosby points out that technology enhancements have paved the way for a more robust ecosystem. There are thousands of applications now flourishing atop various blockchains, helping stabilize prices like a seat belt in a speeding car. One key highlight in this tech evolution is the decentralized finance (DeFi) boom — it’s like the party just got started and everyone is invited!

The Bitcoin Resurgence

Bitcoin has made headlines by recently breaking its all-time price high, surpassing its previous record of $19,892 set in 2017. After a plummeting nosedive during the tumultuous COVID-19 era, where Bitcoin dipped to $3,600 — which is less than my last impulse buy — it has since rode the waves upward through what has been a pivotal year (and oh, a presidential election too).

Changing Dynamics Post-Pandemic

Last year saw a remarkable shift in sentiment, especially with COVID-19 forcing governments to churn out massive amounts of money toward economic relief — it’s like they turned on the printing press and forgot to turn it off. Crosby notes that the overly dovish monetary policies coupled with a generally renewed focus during an election year have both played roles in the current atmosphere.

Conclusion

The bottom line is that crypto’s current macro trend stands distinct from the 2017 bullish days. With more accounts, institutional interest, and advanced technology, it might not just be a wild ride anymore — it might actually be a safer bet!