When diving into the world of cryptocurrency for the first time, it’s easy to feel overwhelmed by the complex technical terms and concepts. Bull run is one such term frequently used by crypto investors. But what does the term really mean? We find out in this new Crypto Dico on Coinpri!
- What is a Bull Run? ?
- Bull Run, the event we’ve all been waiting for!
- History of the various Bull Runs on the Crypto market
- What is the Bear market?
- How to recognize a Bull Run?
- What are the factors influencing cryptocurrency price rises?
- When will the next Bull Run take place?
- What are the signs of the end of a Bull Run?
What is a Bull Run? ?
The Bull Run, literally translated as “the race of the bulls”, is a period during which many cryptocurrencies experience spectacular growth, supported by robust investor confidence. The image of the bull, powerful and resolute, symbolizes this phase when certain crypto assets fight for a dominant position on the market.
A Bull Run is often triggered by a notable event, such as Halving, a phenomenon, which occurs every four years for Bitcoin. The first crypto Bull Run was observed in 2013, when the value of Bitcoin soared, increasing by around 9,000%!
Bull Run, the event we’ve all been waiting for!
Bull Run is a particularly popular period in the crypto community. The term is often enough to provoke excitement among investors.
The term “Bull Run” literally translates as “Running of the Bulls”, or sometimes “bull market”. This period is characterized by strongly bullish trends, usually observed some time after the Bitcoin Halving, an event of major importance in the cryptocurrency world that occurs every four years.
During the Halving, the rewards granted to miners for creating a new block are halved, thus limiting the supply of new bitcoins on the market. This reduction in supply often leads to an increase in demand for bitcoins, which can trigger a price rise that can last for some time. It is crucial to note, however, that the market may take some time to react to this event.
To conclude, Halving can lead to an increase in demand for cryptocurrencies on the financial market, which can result in a period of several months of bullish trend, known as Bull Run.
History of the various Bull Runs on the Crypto market
The market experienced several years of growth:
In 2011, Bitcoin began its meteoric rise, from $1 in February to $32 in June, marking the beginning of its success.
The first Halving took place in 2012 and was followed by the very first Bull Run on the cryptocurrency market a year later. In 2013, the price of Bitcoin rose dramatically by around 9,000%, from $13 to $1,200.
The surge sparked investor interest and dramatically increased cryptocurrency capitalization, which increased 160-fold from $75 million to $12 billion in two years.
However, after this spectacular surge, the price of Bitcoin gradually fell, stabilizing at around 200 $.
Bitcoin’s second bull run was characterized by two distinct phases.
The first began eight months before the expected Halving in summer 2016. During this first phase, the price of Bitcoin rose by 112%.
In 2017, a second peak was reached, the price of Bitcoin, below $1,000 in January, climbed to almost $20,000 in December of the same year. However, some have speculated that this increase was the result of market manipulation.
While Halving is often compared to a “Running of the Bulls”, it can also be followed by a slight downturn before recovery. In 2020, the third Halving was followed by a slight decline in the price of Bitcoin.
Twelve months later, the fourth Bull Run took place as the world began to recover from the health challenges associated with the Covid-19 pandemic. Bitcoin reached the $69,000 mark, while other cryptocurrencies, such as Ethereum, rose sharply.
This event marked a turning point for Bitcoin and other cryptocurrencies, which began to exert a significant impact on traditional finance.
What is the Bear market?
In finance, the term “Bear Market” refers to a period during which asset or share prices experience a significant decline from their last peak, lasting more than two months. This phase can last several months, or even years, before coming to an end.
As you can see, this is the opposite of the Bull Market, but we’ll cover it soon in a new Crypto Dico.
How to recognize a Bull Run?
There are a number of indicators which can be used to identify the start of a Bull Run, but the main one is an increase in asset prices of more than 30% from their recent lows over a period of more than two months. In addition, an increase in demand relative to supply can also be a sign of a Bull Run.
In other words, a Bull Run can only be confirmed when markets register significant and sustained growth. It is this increase that attracts more investors and stimulates market dynamics.
What are the factors influencing cryptocurrency price rises?
The evolution of the market can be influenced by various factors, such as:
- Global economic growth;
- Investor confidence ;
- New users’ increased interest in cryptocurrency;
- The limited availability of certain cryptocurrencies on the market;
- Halving events. This last point is often seen as a positive factor for a price rise, although it is not the only factor and does not necessarily guarantee a Bull Run.
When will the next Bull Run take place?
Many analysts have already expressed their anticipation for the next bull run as well as the record it will reach: 100,000 minimum. Forecasts are based on the next halving, scheduled for early next year.
What are the signs of the end of a Bull Run?
Recognizing the end of a Bull Run is a challenge for all investors. However, certain indicators can help you determine when a bull run is coming to an end.
For example, a prolonged downtrend, a significant drop in trading volume and increased volatility may indicate that the end of a Bull Run is approaching. In addition, it’s important to be wary of expert forecasts that always anticipate a rise.
What’s more, if you hear your baker or your family talking crypto and asking you for help in investing, the end of it is not far off…
To become a successful investor or trader, it is essential to keep abreast of market trends on a daily basis. By being well-informed and acting prudently, it is possible to make significant gains from market upswings and downswings. Consult Coinpri regularly to be constantly informed and anticipate the great opportunities offered by Blockchain technology.
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.