3 Factors That Could Spark a Crypto Bull Market in May

▲ Bitcoin (BTC), War, Geopolitical Crisis / ChatGPT Generated Image ©

After Bitcoin's sharp decline, the frozen market is showing signs of a rebound in May, with observations suggesting that a strong bull market could reopen if certain variables are met.

According to crypto media outlet Watcher.Guru on April 23 (local time), the cryptocurrency market, which has contracted in recent months, is projected to enter a full-fledged bull phase in May 2026 if three factors align: easing geopolitical tensions, expectations of interest rate cuts, and regulatory clarity. Bitcoin (BTC) has seen investor sentiment significantly shrink, falling from a high of $126,080 in October 2025 to around $62,000 in February 2026.

The first variable is the easing of tensions between the United States and Iran. Analysis suggests that if the possibility of nuclear negotiations between the two countries emerges and the risk of an all-out conflict decreases, investors' risk aversion sentiment could quickly ease. The resolution of war risks positively impacts global assets across the board, and the cryptocurrency market could also experience upward pressure due to improved investor sentiment.

The second is the expectation of interest rate cuts. President Donald Trump has nominated Kevin Warsh as the next Chairman of the Federal Reserve, and he is scheduled to take office in May. Unlike current Chairman Jerome Powell, who has maintained a cautious stance on interest rate cuts, Warsh is highly likely to accommodate calls for rate reductions. Interest rate cuts mean an expansion of liquidity, which is considered a key variable that could stimulate capital inflow into the cryptocurrency market, a risk asset.

The third is the passage of the CLARITY Act, a bill concerning the structure of the cryptocurrency market in the United States. If regulatory uncertainty is resolved, institutional and individual investor participation is likely to expand, which could lead to an overall improvement in market supply and demand. A clear regulatory environment is analyzed as a factor that can enhance the trustworthiness of the cryptocurrency industry and provide additional upward momentum.

However, even if an upward scenario is likely, the possibility of increased volatility remains. It is also pointed out that investors' risk appetite has not fully recovered, and if tensions in the Middle East escalate again, the market rebound could be limited. Ultimately, the May bull market is assessed to depend on how quickly these anticipated factors materialize.

*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.*