Bull vs. bear crypto market: What's the difference and how to handle both
-
Loading... - Siti Lestari
- 28 Sep 2022
- 61 Views
- 0 Like
- 0 Comment
“Bull” and “bear” are typically used to describe how stock markets are performing — whether they are appreciating or depreciating in value. In this context, a rising market is called a bull market, while a declining one is called a bear market.
Given that the crypto market is generally volatile and fluctuates on a daily basis, these terms are used to refer to longer periods of either mostly upward or downward movement. Likewise, changes in markets are indicated by substantial swings (at least 20%) in either direction.
In this article, we’ll focus on how these trends apply to cryptocurrency. Specifically, we’ll discuss: What is a bull or bear market? What characterizes bull vs. bear markets? How to know whether we are in a bull or bear crypto market? The key differences between bull and bear market, and how to invest in a bear vs. bull market.
What is a bull market?
A bull market refers to generally favorable economic conditions. It means that a market is on the rise and is also usually accompanied by positive investor sentiments concerning the current uptrend.
There is a sustained increase in asset prices in a bull market, accompanied by a strong economy and high employment levels.
This applies to cryptocurrency markets as well as traditional markets. In cryptocurrency, however, it is more common to see stronger and more consistent bull-run crypto phases.
What is a bull run in crypto typically like? A 40% increase in price over one to two days is quite the usual scenario. This is because crypto markets are relatively smaller than traditional markets and are, therefore, also more volatile.
The term “bull market” is believed to have originated from a bull’s fighting style, wherein it attacks its opponents with its horns in an upward motion. Today, a “bullish” market or investor usually connotes optimism concerning an asset’s continued rise in value. Read More...
