Is the 2025 Bull Run Over? Here’s What You Need to Know

The cryptocurrency market has been on a roller coaster ride in 2025. Bitcoins and several other assets have experienced substantial gains earlier this year. However, in recent weeks, we have seen a steep decline in Bitcoin. Investors have started anticipating whether the much-awaited crypto bull run has reached its peak. 

Their apprehensions are growing as macroeconomic uncertainties, regulatory concerns, and even geopolitical tensions are casting their shadows over the crypto market’s future. The biggest question is: Is the Bull Run of 2025 over? Or is it a period of temporary correction before another upward movement?

Key Takeaways

• Short intro on whether the crypto bull run is over.
• What are the reasons behind investor apprehensions?
• Macroeconomic factor that could recover the 2025 crypto bull run.
• Major factors for Bull Run Resurgence.

Reasons Behind Investor Apprehensions

Market Instability Added with Trade Tensions

One of the major causes of the downturn in the crypto market is the increasing trade tensions between the United States and other big players like Canada, China, and Mexico. The United States has imposed a wide range of tariffs, increasing a wave of global trade war among the countries. Market volatility in the crypto market has significantly increased due to these trade tensions. These not just affects the trade equities but also the digital asset space.

Even in the past, global economic instabilities have had a mixed effect on the price of Bitcoin. While there are investors who look up to Bitcoin as a hedge against inflation and financial uncertainty, others tend to convert their riskier assets during times of uncertainty. The imposition of tariffs by the US government has led to capital moving out from speculative assets. It also includes cryptocurrencies as investors are looking for safer havens in the US.

Macroeconomic Factors That Could Revitalise the Crypto Bull Run 

Interest Rate Cuts and Monetary Policy Adjustments

Despite the fears surrounding the end of the bull run, several macroeconomic factors could lighten the bull run sentiment in the market. One of the most critical factors is the monetary policy adjustments by the US Federal Reserve.

Due to rising economic risks and sluggish economic growth, they might cut interest rates. Lower interest rates encourage higher investments in high-growth sectors and make borrowing affordable. Historically, phases of monetary easing have coincided with increased capital inflows to Bitcoin. Lower interest rates reduce the opportunity cost of holding non-yielding assets like crypto.

Additionally, lower borrowing costs mean that institutional investors have greater access to capital. This capital can be deployed into higher yielding assets like Bitcoin. If the Federal Reserve follows through with the rate cuts in the coming months, we might experience renewed interests in the crypto investments. It might lead to another half of the bull run in the crypto market.

Major Catalyst for Crypto Bull Run Resurgence

1. Government Initiatives and Strategic Crypto Reserve

Another factor is the government-backed initiatives that can revive the bull run and take the crypto market upwards. Recently, President Donald Trump ordered the creation of a US strategic crypto reserve. It would aim at enhancing America’s position in the digital asset economy. This move would signify a major shift in governmental attitude toward cryptocurrency. Crypto would be recognized as both a financial instrument and a strategic economic asset.

The establishment of a crypto reserve might provide stability and legitimacy to the market. It would also encourage greater adoption by the market investors. If the US reserves begin to accumulate Bitcoin as one of their financial reserves, it would also be followed by other nations. This would drive up the demand as well as the price of Bitcoin.

Additionally, regular clarity resulting from the government involvement in the crypto segment might attract more institutional capital. It has always been hesitant due to unclear regulations and clarity on the crypto frameworks. If the government continues to support crypto investments, the market might observe renewed confidence. It might also mitigate fears of a prolonged downturn.

ALSO READ: Trump’s Crypto Strategic Reserve: A Game-Changer for Bitcoin & Digital Assets

2. Correlation between Bitcoin and Global M2 Money Supply

This is another crucial indicator for the dip of the bull run in 2025. The correlation between the global M2 Money supply and the price movements of Bitcoin might also affect Bitcoin’s price movements.

M2 money supply refers to the total amount of money that is in circulation. It includes cash, checking deposits, and all convertible near money assets like the savings account. These factors are very crucial in measuring the liquidity of the economy.

The phases of significant M2 expansions in the past have coincided with the bullish Bitcoin cycles. The liquidity surges when the central banks increase their money supply. It also leads to price inflation. This case has been evident in the previous bull runs, where increased global liquidity fueled speculative investments in digital assets.

For example, in 2020-2021, the massive expansion of M2 due to the pandemic-related stimulus packages represented a historic Bitcoin rally. A similar situation might happen in 2025 if central banks around the world adopt expansionary monetary policies in response to economic challenges. If global liquidity increases, investors might once again turn towards Bitcoin as a store of value and hedge against the currency debasement. It might set the stage for another bullish phase.

Conclusion

The recent market movements led to many queries about whether the 2025 bull run is over. The answer to this is far from clear-cut. The recent downturn in Bitcoin’s price has turned down the confidence of investors. And with global economic instability and trade uncertainties, the market becomes more unstable. However, several macroeconomic factors might also light the fire of a new bull run.

Potential interest rate cuts in the Federal Reserve and the historical correlation between M2 money supply and Bitcoin suggest that the market might still see a significant upside. As regulatory clarity improves and institutional interest grows, Bitcoin and the broader crypto market might yet experience another phase of bullish momentum. 

Investors should always remain cautious and vigilant because the crypto market is known for rapid fluctuations. You can keep yourself updated regarding the bullish run of 2025 and its latest trends from Mudrex. Join our telegram channel now and be on top to learn more about the bullish run in 2025. You can also download the official Mudrex App to keep yourself updated.

FAQ

1. Which Crypto Can Give 1000x in 2025?

There are many potential cryptocurrencies that can give 1000x returns in 2025. You can follow the Mudrex telegram channel or the Mudrex platform to learn about the possible cryptos that have 1000x potential.

2. When to sell crypto during the bull run?

Investors are often worried about selling their assets during the bull run. Its better to avoid FOMO and take regular profits. Sell some portion of your assets and hold other portions for later down the line.

3. How long will the crypto bull run last?

The crypto bull run is expected to last till 2026. However, at this point of time, the market has turned other way round. But, it is expected that the bull run might reignite after sometime.