Bitcoin is on fire once again, having rallied 80 percent this year and spurring calls for a new crypto bull market, writes Jack Denton for Barron’s.

However if you are considering investing in crypto, there are several things you need to consider.

There is logic to the rise of the most popular cryptocurrency, which has topped $30,000 for the first time since June. Crypto has long acted similarly to tech, which suffered greatly due to rising interest rates.

Now that hopes are high that the Federal Reserve will soon stop raising rates, tech stocks have started to gain once again along with “risk assets” like crypto.

“A reversal or pause by the Fed will buoy risk assets, including Bitcoin,” said Alex Thorn, head of research at Galaxy Digital.

Crypto traders are also most likely anticipating tighter supplies of the cryptocurrency’s issuance because the software code that underlines the token periodically cuts the number of new Bitcoins produced through mining in half. The next halving event will take place in about a year.

Additionally, crypto, including Bitcoin, may have been overdue for a rally after a bear market that removed over $2 trillion in token value and pushed Bitcoin as low as $16,000.

Another factor that is fueling Bitcoin could be the recent banking panic, as crypto advocates have long claimed that Bitcoin is much safer than bank deposits – even if they have proven to be the opposite.

Meanwhile, there are several signs that we are looking at another crypto bubble inflating. Among them is the growing number of digital wallets that hold just tiny amounts of Bitcoin. This could be a sign that the cryptocurrency’s rally could be fueled by small-time traders.

Analysts also believe that the Bitcoin rally could peter out soon.

“I expect Bitcoin to trend between $25,000 and $35,000 until the end of November,” said Sam Yilmaz, co-founder of venture fund Bloccelerate.

Read more about Bitcoin in Barron’s.

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