Crypto Bull Market Explained
A bull market is a financial market where prices are expected to rise or are already rising. The phrase “bull market” or bull run is commonly used in the stock market, but it applies to all tradable assets.
Some of the assets associated with a bull market include bonds, real estate, commodities, and currencies (if you are thinking about investing – read more about best crypto friendly banks). A crypto bull market can last for months and even years, depending on various economic factors triggering the situation.
A bull market in the crypto industry is a financial market where digital coins experience an increasing market price (from 20%) over a given period.
The primary crypto market bull or bear indicator is the market price of the cryptocurrencies over time.
A bear market is the opposite of a bull market. A bear market is characterized by a decrease in assets’ market prices, low demand, and high supply. Investors have low confidence and sell more, with fewer international investments. Other features include low GDP, a weak economy, less trading, and sustained lows in stock prices.
It’s difficult to predict when the next crypto bull run will start since the factors that cause these changes can vary wildly and include spontaneous global events. Predicting the beginning of crypto bull and bear market cycles is mostly a gamble, however certain strategies may help investors prepare for one.
The duration of a crypto bull market is typically expected to range from a few months to years. The crypto bull market is determined by various factors and doesn’t last forever. The period can be reduced by policy adjustments made by key regulators, especially when the causal factors are macroeconomic factors.
There is no specific information or facts related to the next crypto bull market prediction since this is impossible to fully know for certain. Experts are using historical data to offer possible predictions for the future, but predictions can vary widely and offer no concrete knowledge.
During a bull market period, crypto traders and holders should implement various strategies to profit from the crypto bull market (read more about one of the strategies – crypto staking). Stock traders use the following strategies, which crypto investors can borrow; retracement and buy and hold.
During a bull market, investors must have investor confidence, expectations, and optimism of solid results for a given period. It’s difficult for experts and analysts to predict when the experienced trends will change.
There are no set metrics used to identify a crypto bull market over a given period. The most common definition of a standard bull market is the increase in stock prices by 20%. Bull markets are difficult to predict.
Most analysts and experts will only identify a bullish market when it’s happening. What is a crypto bull meaning, and how do crypto holders benefit from it?
In this Crypto Bull Market Explained guide, we cover the critical metrics of a potential crypto bull market. Our experts and analysts have experience in analysing and observing the cryptocurrency market. We also look at the other vital sectors considerably connected to the cryptocurrency industry, like eCommerce and online gambling.
What Is a Crypto Bull Market?
A bull market is characterised by an increasing market price of assets in a financial market. The cryptocurrency market, like others, is also described using key terms; bull or bear market. A bull market is a price-rising market.
In a cryptocurrency bull market, the altcoins will be expected to have an increasing market price. The cryptocurrency market is very volatile, and you can’t use the day-to-day experience of the market to categorise it as bullish.
A cryptocurrency bull market is a long period of upward movement in the market. The widely accepted figure to show significant upward movement is 20%. During a digital currency bull market, there will be increased market confidence, and investors will buy.
The increased optimism in the market by investors will trigger increased demand. A bull market will experience higher demand that outweighs the supply.
A bull in crypto market can be identified by a consistent increase in the market price of digital tokens. Bitcoin experienced its first bull market in 2011. In April 2011, Bitcoin had a market price of €1; in three months, the world’s most popular digital currency experienced a 3,000% increase. In June 2011, its market price was €29 to €32.
The 2011 Bitcoin bull market wasn’t the last, but it showed the great potential of the digital token.
The price of cryptocurrencies is greatly influenced by public confidence. Crypto investors are using public confidence to determine whether a specific digital token is a good investment or not. This strategy is referred to as market sentiment.
How to Know if We Are in a Cryptocurrency Bull Market?
There are key indicators that crypto holders can use to identify a possible cryptocurrency bull market. However, investors should keep in mind, due to the volatility of crypto markets, there is no universal set of indicators that will always confirm a bull market.
Investors are encouraged to look at all the indicators before confirming the possibility of a cryptocurrency bull market.
The primary indicator of a cryptocurrency bull market is the market price of the altcoins. Comparing the market prices of the cryptocurrencies over a given period will indicate a potential bull market.
Increasing digital asset market prices indicates market and investor confidence. It will also indicate a possible incoming cryptocurrency bull market.
There will be a strong demand for cryptocurrencies in a crypto bull market, but the market will have a weak supply. Investors will be willing to buy more but unwilling to sell. This scenario will further trigger an increase in the market price.
A bull market in the cryptocurrency market will be linked to a strong economy. Consumer spending will be high, and returns will be significant. Trading cryptocurrencies and cryptocurrency stocks will increase in a bull market.
Investors will also have a more positive outlook on the cryptocurrency market in a bull market. Investors’ high confidence will also be associated with higher liquidity. Stocks can be traded at lower transaction costs and guarantee steady returns.
An Ethereum bull market will feature plenty of talks about cryptocurrency on mainstream media and social media platforms. There will be increased interest in altcoins among influencers, celebrities, top investors, and sectors that weren’t initially interested.
Any good news in the industry will trigger increased market prices immediately, while bad news will trigger an instant price drop.
When Does the Crypto Bull Market Start?
Investors are the ones who start a crypto bull market. When crypto investors feel there will be a possible increase in market price in the future, they start buying altcoins. They buy digital tokens at a low price, with maximum optimism of getting higher returns on their investment.
The US stock market is experiencing the longest bull market, which started in 2019 and is still ongoing. Experts point out it’s hard to predict when a crypto bull market will start, but using the various key factors which indicate a possible crypto bull market, you can confirm whether the bullish market is ongoing or not.
When Will the Crypto Bull Market End?
In a crypto bull market, frequent fluctuations might be confused as an indication that a bullish season is ending. Misinterpreting these short-term and periodical downward movements can mislead most crypto holders and investors.
It’s best to analyse the potential signs from a more comprehensive perspective. Crypto and finance experts recommend observing the market price actions over an extended period.
Historical precedent shows that most bullish markets don’t typically last for long. Investor confidence will change, often fast. Many unforeseen factors can trigger a shift in investor confidence and optimism.
Factors like unfavourable legislation, global pandemics, and civil wars can trigger a shift in investor confidence. The end of a crypto bull market is marked by the beginning of a cryptocurrency bearish market.
The end of a cryptocurrency bull market will be featured with a sharp and consistent downwards price movement of altcoins. The decreasing price movement needs to be recorded for an extended time and at a minimum rate of 20%.
When investors notice a possible decrease in the price of digital tokens, they’ll start selling to prevent more losses which further perpetuates the downward spiral in prices. These moves trigger a continuous bearish crypto market.
How to Prepare for the Crypto Bull Market Cycle?
The cryptocurrency market will experience sustained and substantial growth during a crypto bull market cycle. There are different steps that crypto holders and investors can take to prepare for a possible crypto bull market cycle.
With the correct steps and strategies, crypto investors and other interested sectors can make a massive investment return in the crypto market.
Buy, Hold, or Sell in a Bull Market?
Cryptocurrency investors and holders will buy more during a bearish market. A crypto bear market is a crypto winter and will have low market prices. The strategy is to ensure one gets maximum profit during the bull market.
So, does this mean one shouldn’t buy during a bullish market? Not necessarily, but if everyone sells during the bull market, this will cause a price drop and trigger a reverse reaction ultimately creating a bearish market.
There are plenty of benefits to buying during a bull market. Buying assets will ensure a bullish market uptrend, strengthening the market and driving more profits. Holding isn’t always encouraged during a bull market.
Investors who predict the prices will continue to rise and want to sell at the highest price can opt to hold their assets, but this comes with the risk that they’ll miss the peak and won’t receive the best price they could’ve on their investment.
Buying, holding, and selling in a bull market all come with various risks and need proper strategizing. Observing and reading about historical trends will provide a deeper insight into implementing the best strategy. You should also update crypto holders on any cryptocurrency news that can trigger a change in the market.
Cryptocurrency Bull Market vs. Bear Market
Cryptocurrency investors will experience bull and bear market crypto cycles. The dilemma of what to do in crypto bull and bear markets haunts every crypto investor. The two markets are significantly marked by the changes in the market prices of altcoins. Cryptos will act the same way stocks act during a bearish or bullish market.
The cryptocurrency market will face many more changes than average stocks during the bull or bear market. Digital tokens have a high affinity to price fluctuations. When the bull or bear market trends take hold, the crypto market experiences instant changes. Crypto investors look at various indicators when giving feedback about the cryptocurrency market.
The added volatility of digital coins and speed of market price changes significantly affect the cryptocurrency market. Investors enjoy different benefits in bearish and bullish cryptocurrency markets.
A well-thought out strategy guarantees maximum profits and fewer losses during any market cycle. Crypto holders and investors need to comprehensively analyse all the key factors that can trigger a bullish or bearish altcoins market.
Next Crypto Bull Run
A cryptocurrency bull market cycle can last for some time before it ends. Crypto investors might wonder when to expect the next crypto bull run. Investors and asset holders prefer having a crypto bull run since it’s associated with massive investment returns. Investing in a crypto bull run requires one to identify the trends early and buy the altcoins before their prices start skyrocketing.
After purchasing the altcoins at a lower price, you can sell them at the peak of a crypto bull run and make massive profits. Bull markets usually are short-lived, with minimal losses and substantial profits. So, What are the best big bull crypto coins?
Best Crypto Coins for Bull Run
Investing in crypto coins for the bull run will potentially attract massive returns on investment when the bullish cycle starts. During a crypto bear market, investors will avoid riskier investments. Picking the best altcoin is vital for investors who want to get the best returns during a future crypto bull run.
Crypto holders need to pay keen attention to the top digital tokens in the cryptocurrency market. Look at the following key market metrics of the digital assets before purchasing them:
- Market capitalization
- Trading volume
- Supply metrics
- Price history
Purchasing a cryptocurrency during a bearish market is a strategic move. You can use effective tactics to ensure you pick the best digital coins.
2022 has experienced a continuous value drop of digital tokens, which multiple negative catalysts have caused. Catalysts like industry-specific headwinds and the global macroeconomic conditions continued to affect cryptos, with Bitcoin experiencing an all-time high in November 2021.
Seasoned and experienced investors know that market downturns experienced in a bearish market are golden investment opportunities. They can maximally utilize the widespread pessimism in crypto investment to target the best digital assets to invest in.
When the cryptocurrency markets jump back to a bullish cycle, the best altcoins will attract massive returns to their holders and investors
List of 5 Coins that Should do Good in The Next Bull Run
Below is a list of the top five coins that will most likely have impressive performance in the next bull market crypto run.
- Bitcoin (BTC)
- Ethereum (ETH)
- Lucky Block (LBLOCK)
- ApeCoin (APE)
- DeFi Coin (DEFC)
What Can We Expect from the Next Cryptocurrency Bull Market?
Right now, investing in the cryptocurrency market seems like a risky move because of the low market prices. Investors also have very low faith in the cryptocurrency market. The optimism of the next altcoin bull market happening soon gives hope to seasoned investors.
The risk of buying digital tokens now comes with the possibility of higher investment returns during a crypto bull run. Investors can buy altcoins when they are low priced and sell them when their market prices skyrocket.
Crypto holders and investors expect increased market price in the next crypto bull, combined with higher returns.
The next cryptocurrency bull market will feature an increased demand for digital tokens among investors, crypto holders, and other critical economic sectors. The market will also experience increased investor confidence and trading of cryptos.
Investors will be willing to sell high, and the economy will be more robust. The number of international investments will also increase. Cryptocurrency experts hope the crypto market will handle the high demand experienced in the next bull market.
It’s hard to predict when a bearish cryptocurrency market will end, mainly triggered by macroeconomic factors like a recession. The main concern of crypto investors is not the duration of the bearish market but how far the market prices will drop. Making an impulsive purchase or sale of altcoins might make one miss a good investment opportunity.
Crypto Bull Market Explained – Conclusion
Several factors drive a crypto bull market. The cryptocurrency market also is more volatile and has fewer investors than typical markets. There are fundamental differences when considering buying, selling, or holding during a bull market.
Most crypto investors will buy cryptocurrencies at low market prices and hold onto them until a bull market run. During the crypto bull run cycle, they will sell the altcoins and make maximum profits.
Observing past crypto market trends and bull run patterns will help in making a strategic decision. The information will help you strategically navigate the crypto market and predict upcoming trends.
Following updates in the altcoins market and reading experts’ opinions is also very instrumental. Every investment decision in a crypto market bullish or bearish, comes with some risks. Hope you enjoyed our Crypto Bull Market Explained article!