Bull Run

A bull run, also referred to as a bull trend, is a continuous increase in the values of specific assets within the financial market.

What Is a Bull Run?

A brass statue of a bull located on Wall Street, New York City – Robert Nickelsberg/GETTY

A bull run (also known as a bull trend) is a period of time in the financial market during which the values of certain assets are constantly rising. Several market variables, including volatility, demand, and market valuation, have contributed to the rapid increase in prices.

What Is a Cryptocurrency Bull Run?

During a crypto bull run, the values of crypto assets constantly rise throughout the course of a market cycle. This is the point in a financial market when investors demonstrate a strong interest in a certain asset, hence increasing the demand for that item.

In the end, the demand for the aforementioned crypto-asset surpasses the supply, indicating an optimistic feeling among investors in the cryptocurrency.

Similarly, when the price of a crypto asset continues to grow on a constant basis, this indicates that the cryptocurrency is experiencing a bull run. The process that drives the values of a crypto asset is intimately tied to the attitudes of the investors who are participating in the process.

How Long Does a Bull Run Last?

Although the length of a bull run might vary, in order to be recognized as such, the run must normally last for a prolonged amount of time. It may linger for several months or even years at a time.

What Triggers a Bull Run in the Cryptocurrency Market?

The reasons for a bull run might also differ. Prices may rise over a lengthy period of time as a result of variables such as investor optimism and confidence, among other things. However, Bitcoin halving is usually a trigger to these bull runs in a crypto market. 

You may check out our Bitcoin halving countdown! 

A bull market is a term used to describe a market that is experiencing a bull run. Unlike a bear market, in which asset values tend to decrease for a lengthy period of time, maybe due to pessimism, a bull market is the polar opposite of a bear market.

Similarly, investors can be considered to be “bullish” about an asset or market if they believe it will rise in value, and “bearish” if they believe it will fall in value.

The Cryptocurrency Bull Run of 2017

In January of 2017, the Bitcoin price surpassed $1,100, setting a new all-time high. Within a few months, the price rose to approximately $20,000 per coin. That is a 20x increase in less than a year.

The price increase in 2017 happened one year after the Bitcoin halving event, similar to the price increase in 2013. One of the distinguishing characteristics of this period was that, for the first time ever, the general public started to take interest in cryptocurrencies. Mainstream media began to cover articles on Bitcoin. Mostly, this increase in price was due to retail investors joining the market for the first time.

What Is a Bear Trend?

There is no hard and fast rule for when a bear trend emerges, but the commonly recognized definition is that it occurs when the market declines by more than 20% from its previous highs. 

As long as the bear market continues, investors continue to fear losing money and sell their assets. Many individuals consider bear trends as a chance to earn money because of the low share prices, but this involves finding an appropriate entry point into the market. Finding an entry point may be challenging, and timing the bottom can be tricky as well.