For the Cryptocurrency Bull Market to Return…What are the 3 Essential Conditions?

▲ Donald Trump, USA, Iran, NASDAQ, Oil Price/AI Generated Image ©

An analysis suggests that three key conditions are necessary for the cryptocurrency market to return to a bull run. The easing of conflict between the US and Iran, the passage of the US cryptocurrency market structure bill (CLARITY Act), and an increase in capital inflow into cryptocurrency spot ETFs were presented as major variables for a market rebound.

According to the cryptocurrency specialized media Watcher.Guru on July 7 (local time), the cryptocurrency market is undergoing one of its largest corrections in the past year. Bitcoin (BTC) has fallen by approximately 50% since reaching $126,080 in October 2025. The media analyzed that macroeconomic uncertainties and geopolitical tensions, which have continued since late 2025, dampened investor sentiment and led to a market-wide correction.

The first variable is the resolution of the conflict between the United States and Iran. The media explained that tensions between the two countries led to rising energy prices, which burdened the overall US economy and negatively impacted the cryptocurrency market. US consumer prices rose to 4.2% in May 2026, and the US Federal Reserve froze interest rates to stabilize prices. As high interest rates typically pressure the cryptocurrency market, a peace agreement between the two countries could lead to improved investor sentiment, it predicted.

The second variable is the passage of the US cryptocurrency market structure bill, the CLARITY Act. This bill aims to enhance regulatory clarity and investor protection in the cryptocurrency market. The media analyzed that if regulatory uncertainties are resolved, capital inflow, especially from individual investors, could increase, potentially fueling a new bull run in the cryptocurrency market.

The third variable is an expanded inflow of ETF funds, focusing on Bitcoin spot ETFs and Ethereum spot ETFs. The media explained that ETFs have become a core pillar of the cryptocurrency market over the past two years, and ETF buying was behind Bitcoin and Ethereum reaching all-time highs in 2025. It predicted that if ETF fund inflows expand again, the prices of underlying assets are also likely to rise.

Meanwhile, the media also noted that Bitcoin is still within a 4-year cycle. Bitcoin recorded new all-time highs in 2017, 2021, and 2025, and if the same pattern continues, the next peak could form in 2029. Based on this, it predicted that early signs of the next bull market could appear from late this year or early next year.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*