The Bitcoin’s Bull Run in 2017 vs 2020

Bitcoin has sparked a flurry of excitement in the crypto world as it has had a sustained bull cycle since 2020. Namely, this bull cycle not only is in full force in 2021, but it made the headlines on numerous occasions when it reached record-breaking prices, including the last record with a value of over $60,000.  

But this is not the first time Bitcoin has had a significant bull cycle. In fact, one of the most important bull cycles was in 2017 when Bitcoin had achieved its first explosive growth. However, a lot of new investors are wondering what the difference between this bull run and the last one is. In this article, we review important aspects of this bull cycle that crypto newbies should take into consideration.  

Factors of the Bull Market Phase in 2017 

The main factors that drive each bull cycle are the availability of BTC and the demand for BTC.  In other words, the ratio of supply and demand will always affect the price of Bitcoin. The similarity of the bull cycle in 2017 and the one in 2020 that it was triggered by the Bitcoin halving, an event that halves the block reward of the miners and subsequently reduces the available supply of BTC.  

Hence, the price of Bitcoin after the halving in 2017 was around $1,000. In May, it exceeded $2,000, and it reached a new high price in September of $5,000. The bull cycle had its peak in November when it broke through $17,000. Then the price settled in the range around $8,000 to $10,000 in the following years.  

Online Trading Sites 

In 2017, Bitcoin was not as globally renowned as a viable alternative to fiat currencies as it is today. Consequently, the number of exchange platforms in 2021 outnumbers the of trading sites in 2017. This directly impacts the demand and liquidity of BTC because it is very easy for a greater number of people to sell their BTC, buy BTC, or trade it for other cryptocurrencies.  

Technology-wise, the platforms have become more advanced in 2021. One example is Bitcoin Compass, which is powered by state-of-the-art AI technology that gains trading insights quickly while delivering superior performance at a high win rate to its users.  Actually, the daily return on investment of up is up to 60% on the site. The platform is also accessible as a mobile app for iOS and Android mobile devices. 

Bull Run in 2020 

The bull run is 2020 was anticipated due to previous halvings, which have moved the price of Bitcoin. However, no one could have known that it would break many records. The growth noted from 2020 to 2021 was at a 224% increase rate. The difference was that the block reward in 2017 was 12.5 BTC, while in block reward after this halving was 6.25 BTC. Hence, the available supply is minimal, while the demand is much bigger because more investors are familiar with Bitcoin.   

Moreover, the demand is growing at an unprecedented rate, and this simultaneously fuels the growth cycle of BTC, especially since the overall supply is restricted to 21 million. So, the main reason for this kind of growth is the digital scarcity of Bitcoin. But another factor that has a positive impact on this cycle and is the support of institutional investors.  

In the past, retail investors were interested in BTC, while big trust fund and notable companies didn’t believe that cryptocurrencies would amount to anything. This has changed, obviously, as the demand is increasing, and the volume of trading is much bigger due to institutional investors like Tesla, Goldman Sachs, BlackRock Global Allocation Fund, and many other famous investors.