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Historical Background Of The Crypto Bullrun Cycle:
If there's one word that has dominated the crypto sphere over the past couple of months, "bullrun" is that word.
Even if you are living under the rocks, it must have forcefully infiltrated into your ears by now.
You have to pardon we crypto bros for all the bullrun noise. But trust me, it is worth all the hypes.
And I will tell you why shortly.....
Just to make sure we are all on same page, let's review what the crypto bullrun cycle is all about and why it is such a big deal for every player in the crypto space.
The crypto bullrun is characterised by one major event - The Bitcoin Halving.
And this happens every four years.
The creator of Bitcoin designed it as a deflationary asset and to maintain this, every four years, the reward for Bitcoin miners is reduced by half.
This reduction in rewards limits/slows down the supply of Bitcoin and following the simple law of economics, when supply is reduced and there's still growing demand, price increases.
Let me use a simple analogy to explain this concept better....
Imagine you are a local farmer and just harvested some yams from your farm and you need labourers to help you carry the yams to the market to sell off.
The first day, you agreed to pay the the labourers N1000 for each tuber of yam they carry.
The next day, you reduced their pay from N1000 to N500 for each tuber of yam they carry.
The third day, you further reduced the N500 to N250 and it kept on going that way.
As the labourers' paycheck reduces, naturally, the rate at which the yam is been supplied to the market will be reduced.
And since you are the only supplier of that particular type of yam and there's still growing demand for it, as the supply slows down, scarcity will set in and the price will increase.
This is exactly what plays out between Bitcoin miners and Bitcoin.
The Bitcoin miners gets rewarded (paid) with Bitcoin for validating and adding transactions to the Bitcoin blockchain. And aprox. every four years, the rewards they get is reduced by half.
Just like the yam-labourers example, this reduction in reward limits supply, creates scarcity and increases the price of Bitcoin.
The first Bitcoin halving was in 2012 which peaked the price of Bitcoin from $12 to $1000 one year after the halving.
In 2016, the second Bitcoin halving happened and the price of Bitcoin surged from $650 before halving to $19,700 after halving.
In 2020, the third Bitcoin halving happened and Bitcoin peaked to $69,000 by 2021.
In April this year, 2024, another halving happened and so far, Bitcoin attained a new all-time-high (ATH) price of over $103,000.
You notice the pattern now?
There is always a massive surge in the price of Bitcoin after every halving event.
And when the price of Bitcoin surges, it reflects on the entire crypto market and drives up the prices of other coins (Alt coins) too.
The bullrun cycle has two distinct seasons - The Bitcoin season and and the Alt season.
I will explain both in the next lesson.
Retweet and comment if you want me to share the next lesson.
🎉 W1 Airdrop – Only 5 Hours Left!
📅 Start Time: July 17 at 17:00 (UTC+0)
📝 Participation Steps (All conditions must be met):
1. Follow the official EFSANE Twitter account
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2. Wait for the official airdrop tweet to be posted at 17:00
3. Retweet the tweet and comment your Efsane UID
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👉Please carefully review the following details and requirements:
* Time: July 17 at 17:00 (UTC+0)
🎁 Airdrop Distribution Method (Lottery System)
The total W1 token airdrop amount for this round is 200,000, which will be distributed via a lottery system to participating users. Specific rules are as follows:
1. You must follow the official EFSANE Twitter account
2. On July 17 at 17:00 (UTC+0), EFSANE’s official Twitter will post the designated airdrop tweet
3. Participation method: Retweet the tweet and comment your EFSANE UID
4. Distribution standard: The first 1,000 users who comment (in chronological order) will receive the airdrop. The earlier you comment and retweet, the higher the chance to receive it
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* Can be immediately withdrawn to Bitget Exchange and converted to USDT
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✅ Participation Requirements (Must meet all three below):
* Follow the official EFSANE Twitter account
* Retweet and comment on the airdrop tweet posted on July 17 at 17:00 (UTC+0)
* Correctly enter your EFSANE UID in the tweet’s comment section
* Once all conditions are met, airdrop tokens are expected to arrive in your EFSANE account within 1 hour
❗️Failure to meet any of the above conditions will disqualify you from receiving the airdrop
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* This airdrop will strictly follow the chronological order of comments on the tweet
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* Be sure to participate on time to ensure eligibility
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