I think it is very likely that we are at the beginning of a new bull market, most coins are up in dollar, next halving will bring the inflations in bitcoins below the inflations target the central bank's haves.
I also think the next Bitcoin halving can trigger a new bull run in cryptocurrency market. But right now it's hard to tell if it's really gonna happen. So far a halving has always pushed up the price, but somehow I'm a bit sceptical this time, but can't say why. But anyway, I'm still hoping it's really gonna happen.
How can this provoke another price hike in the cryptocurrency market? It seems to me that without a certain amount of investment the market will generally freeze in place. In addition, you really need to start thinking about the state of Bitcoin and its prospects for the future, since it is he who influences the pricing of many cryptocurrencies.
Due to the halving, fewer new Bitcoins are produced every day, thereby the quantity of new Bitcoins coming onto the market will be reduced (theoretically). If you compare the prices with the last halvings, you can see that the Bitcoin price has always changed positively due to the halving. So I'm assuming it can happen again this time.
Of course the market has changed over the last few years and nobody can say 100% if it will happen, I don't either, but I still hope so. The possibility, as you say, that the market may freeze without new investors can also be right, but so far new and bigger investors have always joined and since the adaptation of crypto is progressing so far, maybe everything will continue as before.