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Glossary

Bull Market

A bull market is a prolonged period of rising prices and optimistic sentiment. In crypto it describes a sustained, broad advance, often accompanied by rising trading activity and public interest.

How it works

Bull markets are fuelled by some combination of new demand, easier financial conditions, positive news and growing speculation. Rising prices attract more participants, whose buying pushes prices higher still. The reverse condition — a sustained decline in prices and confidence — is a bear market.

Why it matters

Strong rallies can create a fear of missing out that leads people to buy late and take on too much risk near a peak. Understanding that markets move in cycles helps temper expectations during the euphoria of a bull run.

Example

A stretch in which most major coins climb sharply and newcomers flood in is typically called a bull market.

Bull Market: Frequently Asked Questions

What drives a bull market?
Bull markets are fuelled by some combination of new demand, easier financial conditions, positive news, and growing speculation. Rising prices attract more participants, whose buying pushes prices higher still, creating a self-reinforcing cycle. No single factor is required, and several usually act together.
What is the risk of buying during a bull market?
Strong rallies can create a fear of missing out that leads people to buy late and take on too much risk near a peak. Because markets move in cycles, prices that climb sharply can later reverse into a bear market. Understanding this helps temper expectations during the euphoria of a bull run.
How do I know if we are in a bull market?
A bull market is typically described as a stretch in which most major coins climb sharply, trading activity rises, and newcomers flood in. It is identified by a sustained, broad advance rather than a single coin moving for a short time. The label is clearer in hindsight, since trends are only confirmed over time.