What is a bull market or a bull run?
When you start investing in cryptocurrency, you speculate on the price of a currency (most of the time). Everyone wants his or her cryptocurrency to increase in value over time. There are some risks involved in investing in cryptocurrency, but if you read in well, do good research and invest in the right coins, you should be fine. When you expect that the price of a coin will rise in the future, you’re probably not the only one. If there is confidence among a large group of investors and the prices actually go up, you speak of a bull market.
With a bull market, there is a lot of confidence in the market.
If a large group of investors are buying cryptocurrency on a massive scale and expect the price to rise, that is something that certainly stands out. The great confidence investors have in the currency can also lead to an increase in the price, because where there is a lot of demand, the price will also rise.
The term for high confidence among investors is a bull market. The market is compared to a bull because a bull moves its horns upwards to attack a prey. The opposite of a bull market is a bear market. A bear catches its prey by hitting down with its claw. So, a bear market also stands for a market that goes down.
The largest group of investors in a bull market are also known as a herd. This herd of investors often doesn’t go in until it is too late, when most of the profits have already been made. This can be compared to the people who bought Bitcoin in 2017 when the price was $20,000 (the latest all time high of Bitcoin).
What’s a bull run?
A bull run can only take place during a bull market. A bull run is a longer period of rising prices and optimism in the market. Most investors are eagerly looking forward to a (new) bull run. When investors talk positively about Bitcoin or other cryptocurrency, they are bullish.
An example of a bull run was in the end of 2017 and the beginning of 2018.
What are the characteristics of a bull market?
- Prices go up for a long time
- There is a lot of confidence in the market
- Certain projects are overpriced
- Prices rise hard in case of good news
- Prices barely drop in case of bad news
- Mainstream media talks about cryptocurrency
- People who weren’t interested in cryptocurrency before are going to read in