What is a bull market?
What is a ‘bull market’?
BULL MARKET (two-word syntagma) is a positive situation on the market when the price of an asset rises 20% or more, usually followed by investing optimism and buying.
The term is traditionally used in reference to the stock market, but other asset classes can have bull markets as well, such as real estate, commodities, or foreign currencies, and in this case cryptocurrencies.
Used in a sentence: ‘’In order to benefit from the bull market, an investor should buy early and wait for the price to reach its peak.’’
Facts to remember:
- A bull market is a sustained period where prices rise
- A bull market generates optimism, encouraging buying
- The opposite situation is called the ‘bear market’
The naming of “bull market” originates from the way a bull attacks its prey – positioning its horns upwards. Lasting of a bull market varies – from months to years, and even decades. Moreover, bull markets are not easy to predict, but they are a very desirable scenario for hodlers. I.e. BTC bull runs are often indicated by the notable increase in bitcoin market cap.
Though very desirable, bull market scenarios are not necessarily a winning situation for everyone. As in every market, some investors will have a better outcome than others. It’s vital to follow key indicators and understand when the market is entering a bull run. An early stage of the bull market is important since you can apply a simple yet effective buy-and-hold trading strategy.
The same principle applies to both bear and bull markets – market cycles are a very normal occurrence, in fact, they demonstrate that a market is ‘healthy’. With good preparation and research, a trader can profit from both cycles.
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Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.