The cryptocurrency market has faced one of its biggest drawdowns in the last year. Bitcoin (BTC) climbed to a peak of $126,080 in October 2025, but has since fallen by nearly 50%. The dip is attributed to increased macroeconomic uncertainty and geopolitical tensions taking investors by storm since late 2025. Let’s look at three things that need to happen to turn the cryptocurrency market bullish again.

3 Things That Can Turn The Cryptocurrency Market Bullish

One of the most significant events that seems to be holding the cryptocurrency market back in the US-Iran conflict. The tensions between the two nations have directly impacted energy prices, which have consequently put pressure on the larger economy. Inflation in the US climbed to 4.2% in May 2026. The Federal Reserve decided to keep interest rates unchanged to combat rising prices. The cryptocurrency sector often takes a hit when rates remain high. A peace deal between the US and Iran could elevate investor sentiment.

The US may be on the verge of passing the CLARITY Act. The legislation aims to bring more regulatory clarity and investor protection within the cryptocurrency sector. More regulatory clarity and investor protection could lead to a surge in investments, especially from the retail sector. Such a move could trigger another bull run for the cryptocurrency market.

The third thing that could potentially usher in another bullish phase for the cryptocurrency market is a surge in ETF inflows. ETFs have become a key pillar of the cryptocurrency market over the last two years. Bitcoin (BTC) and Ethereum (ETH) climbed to new all-time highs in 2025 thanks to increased ETF purchases. If ETF inflows take off, we could see the prices of the underlying asset go up as well.

Also Read: Cryptocurrency Market Stalls After Slight Recovery: What Next?

One factor investors should note is that Bitcoin (BTC) is still well within its four-year cycle. The original cryptocurrency has hit new peak every four years; in 2017, 2021, and 2025. If we go by that pattern, BTC could hit a new peak in 2029. If this is the case, we could begin to see the early signs of a bull run later this year or early next year.