FMCTP

Bull market terminology may sound very familiar to your ears if you have a little interest in financial markets, but you might not know what it really means and when a specific market is in a bull cycle. In this blog, we will discuss in detail, what a bull market is especially with regard to crypto?

You may have seen that when a bull attacks, it lifts one up and tosses in the air. The same happens with financial markets when prices of the assets start rising high, it is the start of a bull market or bull run. During bull run, markets show great confidence from investors and demand escalates as compared to supply. This goes for both traditional and crypto markets. When bull market comes, optimistic sentiments are on the rise from investors and prices of assets shoot up in a short span of time.

What do we mean as 'Bullish'?

Bullish means that you as an investor or holder are hopeful that price of an asset will significantly rise from current levels.

As compared to traditional markets, crypto markets are highly volatile and they do not always follow traditional economic patterns. When Bull cycle hits, prices of crypto assets may rise 40-50% in a couple of days which is uncommon for other economic markets.

Sometimes crypto markets show bullish trend when investors lose confidence in traditional financial market. This was lately experienced when USA was printing dollars to support its crippling economy and USD was losing its value so people started investing in Bitcoin and other crypto assets.

Will we see crypto bull run in 2023?

Well, it seems pretty unlikely that markets will see a bull run in 2023 as overall condition of stock markets and economies worldwide does not look very encouraging. Investors are showing more interest in gold and oil which is why, their prices have increased significantly over a couple of years. Inflation is on rise and businesses have been dented pretty hard. US keeps on printing dollar which is resulting in its devaluation. So, it appears that before a strong start of a bull run in crypto, markets will see a capitulation first, then we will see an increased demand of crypto assets, as happened in March 2020 when Bitcoin dropped to $3800. Although I do not see Bitcoin going down to $3800 again but it will see a significant drop which will then create a buying pressure due to lower prices and then we will see a boom in crypto markets.

When will be the next crypto bull run?

Crypto markets last cycle, experienced a massive bull run where Bitcoin price rose from $3800 to $67000 from March 2020 to November 2021. This exuberant growth in Bitcoin and crypto asset makes people questioning that when will we see the next bull run?

Many crypto analysts are suggesting that next crypto bull run will start in 2025. Although no one can predict anything with certainty in crypto as multiple factors impact these digital markets, but by analyzing previous trends we hope that next bull run will be in 2025.

Why analysts think that 2025 will be the bull year for crypto?

Well, they say that history repeats itself and that is very true for crypto. Crypto world had seen massive bull run in 2017 and as expected right after 4 years, we all experienced another massive bull cycle 2021 which created many new millionaires in a very short span. Although many other indicators help predict next bull market, but if history keeps repeating, we will see next bull run in 2025.

What usually triggers a crypto bull market?

Crypto bull market is usually triggered by many factors but mainstream and social media plays a significant role which is very uncommon for other financial markets.

• A single good news about a coin can surge prices.

• Investors show confidence in market and then public follow suits.

• Big names like Elon Musk’s single tweet can lead to a 20 to 30% price increase in Dogecoin (a meme coin) making it one of the top ten coins according to market cap.

• MicroStrategy’s announcement about its buying of a significant number of Bitcoin always end up creating a positive sentiment in crypto market.

Don’ts for a potential bull market:

1. If you are a beginner and you find yourself amidst of a bull cycle after hearing shooting prices of Bitcoin and other crypto coins then the best strategy for you is to trade. You should make sure to take profits along the way as drops may occur sooner than you expect. Many people lost millions of dollars in anticipation that prices may go further in last bull cycle of 2021 but end up losing all of it. This is why, as the prices go up, take profits and have liquidity to buy those sharp dips to maximize your profits.

2. If you have bought crypto coins during a bear market at pretty low prices then best strategy for you is to hold your coins and wait for Bitcoin to reach its ATH as other coins will follow suit. Once BTC touches new high, start locking your profits in.

3. Always remember that corrections do occur during bull markets. Financial markets especially crypto does not always go up in a straight line. Corrections are a part of bull markets and when a market corrects, that is a good time to buy the dip. Many people consider 30% to 40% dip as start of a bear market but that can just be a momentarily price correction. You should look at price action over longer time frames so that you do not panic sell all of your assets. Be patient and give some time to markets for recovery after a drop.

How to prepare for a bull market?

1. If you are just beginning to invest in crypto and are currently experiencing the bear market and continuously losing on trades then it is best time for you to prepare for bull market. This is the time for accumulating coins so that you can prepare yourself for 10x, 20x or 30x profit margins that can only be achieved in a bull run.

2. Diversify your portfolio by investing in 6-8 coins and when a couple of them touch all time high, sell them and invest in other well-established coins which have not exploded yet. In a bull market, everything goes up even the weakest of the project can easily make 20x to 30x.

3. Bear markets are the best times to prepare for a bull run. Learn about different coins, about their development team and the projects they have worked on previously. Based on this, invest in coins that have sound technical team with a proven track record. The research you will do in bear market will enable you to understand about great projects and investing in those projects will generate great profits eventually.

4. Meme coins can also produce immense gains during a bull run. But you have to be careful and not putting all eggs in one basket. Make sure to invest only 10% in meme coins as the quickly they shoot in price, the sooner and sharper they dip as investors usually withdraw their money first from meme coins.

Disclaimer: This post contains affiliate links: If you create an account through our affiliate links, We might earn commission but you will bear no cost.