The Difference Between Crypto Bull Runs of 2025 and 2021

1. What is a Bull Run Crypto?

A bull run refers to a period of strong price growth in the cryptocurrency market, a critical phase within the broader cycle: decline → accumulation → rally → repeat.

This uptrend typically begins with Bitcoin, then expands into large-cap altcoins, and finally spreads throughout the market. Historically, Bitcoin's 4-year cycle has been remarkably consistent, with bull runs occurring in the fourth year: 2013, 2017, 2021, and now 2025.

To visualize the difference:

• The 2021 bull run resembled a street festival — loud, colorful, chaotic, and euphoric.
• The 2025 bull run, by contrast, resembles a formal gala dinner — organized, institutional, with Wall Street giants and global financial players now seated at the table. Their presence makes this cycle feel potentially longer and more sustainable.

2. Key Differences Between the 2021 and 2025 Bull Runs

2.1 The 2021 Cycle – NFTs, Play-to-Earn, Metaverse

In 2021, cryptocurrencies were the playground of digital creators.

• NFTs: Non-Fungible Tokens exploded, from art to pop culture, creating the illusion that "anyone can get rich" by owning the right JPEG.
• Play-to-Earn (GameFi): Axie Infinity and early Metaverse projects offered a new narrative: "play and earn real money." Gaming tokens became income streams for players.
• Metaverse Buzz: Platforms like Decentraland and The Sandbox captured attention, allowing people to own land, trade, socialize, and build in virtual worlds.
• DeFi Expansion: Following its explosion in 2020, liquidity continued to flood lending protocols, DEXs, and stablecoins, laying the groundwork for massive on-chain liquidity.
• Layer 1 Explosion: Ethereum's high transaction fees fueled the rise of Solana, Avalanche, Terra, and BSC — the era of "ETH killers."
• Memecoin Culture: DOGE, SHIBA, FLOKI — not just tokens, but cultural and social movements that brought entertainment and adoption to the masses.
• Institutional Entry: MicroStrategy, Tesla, and El Salvador purchased Bitcoin, bringing it into traditional finance.
• Social Tokens & DAOs: Communities began tokenizing themselves, experimenting with DAO governance and collective ownership.

The 2021 cycle represented the peak of digital culture and creative hype, while also laying the foundation for infrastructure growth (Layer 1/Layer 2) and institutional awareness — transforming crypto from a niche playground into a global phenomenon.

2.2 The 2025 Cycle – RWAs, AI, Institutional DeFi, Memecoin

By 2025, attention has shifted dramatically toward real-world utility and financial integration.

• RWA Tokenization: Real-world assets (real estate, bonds, art, etc.) are being tokenized into highly liquid, transparent, and accessible forms. Projections suggest the RWA market could reach $16 trillion by 2030.
• AI x Crypto (DeFAI): From autonomous AI trading bots to AI-powered data protocols, artificial intelligence is empowering crypto projects with intelligence and efficiency.
• Crypto ETFs & Stablecoins: Bitcoin and Ethereum ETFs are now operational, enabling pension funds, insurers, and corporations to invest in crypto as easily as stocks. Simultaneously, stablecoins (USDT, USDC) have become the backbone of global payments — effectively "USD on the blockchain," faster and cheaper than banks.
• DePIN (Decentralized Physical Infrastructure Networks): Merging blockchain with real infrastructure:
  • Community-powered decentralized internet/5G networks.
  • Tokenized renewable energy markets (solar, wind).
  • Real-world data (maps, sensors, AI datasets) on-chain, rewarding contributors.
• Memecoin & InfoFi:
  • In 2021, NFTs defined digital culture. In 2025, memecoins define market culture. Platforms like Pump.fun, LetsBONK, and Boop.fun gamify token launches, making it possible for anyone to create a memecoin with just a few dollars.
  • InfoFi (Kaito, Cookie, StayLoud…) elevates memes further: attention → liquidity. Here, memes are not just funny images — they are powered by social trends, information flows, and community narratives.
  • Memecoins have become the fastest liquidity engine, where retail investors can participate more easily. Some are no longer "just for fun" but are tied to launchpads, communities, and even politics (e.g., Trump or Biden-themed tokens).

The 2025 cycle marks a transition from culture-driven speculation (2021) to integration with global finance, data, and AI — where real utility and infrastructure are the dominant narrative.

3. Regulation & Politics: From Uncertainty to Clarity

In 2021, cryptocurrency regulation was unclear. Under SEC Chair Gary Gensler, everything except Bitcoin was considered a security. Endless lawsuits stifled growth, creating fear among builders and investors. Only Bitcoin futures ETFs existed; there were no clear rules on stablecoins or institutional frameworks. Institutions remained cautious, retail remained unstable.

By 2025, the landscape has changed significantly:

• Trump Administration: The election of pro-crypto President Donald Trump, along with Gensler's resignation, has dramatically improved market sentiment. Pro-crypto laws and policies are being implemented, with the Trump family actively participating in the ecosystem.
• GENIUS Act (July 18, 2025): The first federal law defining "payment stablecoins." Stablecoins must be backed 1:1 by USD or safe assets, with public reserves and federal/state oversight. Within a month of the law's signing, stablecoin market cap rose from $260 billion to $278 billion (+7%).
• Strategic Bitcoin Reserve (March 6, 2025): Trump established a national Bitcoin reserve — confiscated BTC is no longer sold but held as part of U.S. strategic reserves. States like New Hampshire and Texas are also creating their own Bitcoin reserves.
• BTC & Stablecoin Legitimacy: These steps move crypto from a speculative playground to the heart of traditional finance. Bitcoin and stablecoins are increasingly viewed as reserves (like gold) and legal payment instruments.

Crypto has transitioned from a wild west → professional market. Bitcoin remains decentralized, censorship-resistant, and valuable — now with added legitimacy as a reserve asset.

4. Does the 4-Year Cycle Still Hold?

For years, crypto has closely followed the 4-year cycle tied to Bitcoin's halving. Each halving has brought a bull run, followed by a brutal winter. This led many investors to assume 2025 would again be the final year of the cycle before collapse.

However, voices like Raoul Pal (former Goldman Sachs hedge fund manager and co-founder of Real Vision) suggest this time could be different: Bitcoin might shift to a 5-year cycle.

If true, the current bull run could extend for months or even years longer than expected.

Two scenarios emerge:

• If the 4-year cycle repeats: The market may only have a brief window left for explosive gains before correction. It's wise to lock in profits, reduce risk, and rebalance portfolios.
• If extended to 5 years (or more): This bull run could last much longer, bringing new opportunities. However, overconfidence could lead investors to miss the chance to realize profits.

In either case, the key lesson: you cannot control the market, but you can control risk management. If you feel constant stress, you are likely overexposed. Take some profits, ease the pressure, and rebalance.

5. Conclusion

All assets move in cycles — 4 years, 5 years, even 10 years. Cryptocurrencies are no exception. They will gradually synchronize with the broader rhythm of global financial markets: nothing rises forever and nothing falls forever.

Cycles are rings. Those who learn to ride them will accumulate lasting wealth for themselves and their families.

FAQ

What are the main differences between the drivers of crypto bull runs in 2025 and 2021?

2025's bull run is primarily driven by institutional investors and innovative financial instruments like Bitcoin ETF, while 2021's was driven by retail investors and early adopters. The 2025 market shows deeper, more diversified participation and stronger regulatory integration.

2025年牛市中机构投资者和零售投资者的参与程度与2021年相比如何变化?

2025年牛市中，机构投资者的参与程度显著提升，持股占比和交易额均超过2021年水平。零售投资者参与度相对下降，市场结构向机构化转变，专业资金主导行情。

What happened after the 2021 bull run? Why is there a new bull market in 2025?

After 2021, crypto experienced a bear market with regulatory uncertainty. By 2025, institutional adoption, clearer regulations, and macro economic conditions drove renewed interest, leading to a new bull run with more mature market participants.

What are the differences in Bitcoin and Ethereum performance between the 2025 bull run and the 2021 bull run?

In 2025, Bitcoin and Ethereum demonstrated stronger institutional adoption, mature derivatives markets, and clearer regulatory frameworks compared to 2021. These factors resulted in lower volatility, longer market cycles, and more sustained price appreciation with reduced speculative peaks.

Did the risk lessons from the 2021 bull market improve or avoid risks in 2025?

Yes, significantly. Institutional adoption and mainstream acceptance reduced speculative volatility. Enhanced regulatory clarity, stricter risk management, and reduced retail frenzy differentiated 2025's bull market from 2021's, creating more sustainable growth foundations.

How does the regulatory environment differ in impact between the 2025 bull run and the 2021 bull run?

The 2021 bull run operated in a largely unregulated environment dominated by retail speculation in NFTs and GameFi. The 2025 bull run occurs in a mature regulatory framework that attracts institutional capital, encouraging sustainable growth. Greater clarity and compliance have transformed crypto from a speculative market into a professional asset class.