Everything You Need To Know About Crypto Bull Run
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Whether you are an investor in cryptocurrency, stock markets, forex trading, or any other asset, you will have noticed the presence of two major markets: the bull and bear markets. The term “bull market” implies that the demand is rising, and you're making money. In contrast, the bear market implies the opposite; the market is falling.
A crypto bull run is a bull run in the crypto markets which lasts for some time where crypto investors are buying because the demand is greater than the supply, and prices are rising in the market. A crypto bull run can either be gradual or sudden, so the prices are high for a long time.
To elaborate on the whole concept of a crypto bull run in this article, we have Ezekiel Chew, the famous founder of Asia Forex Mentor, to enlighten us further on the crypto bull run. If you are a crypto investor, this article has everything you need to know and understand about a crypto bull run; scroll down the paragraphs below for more information.
What is a Crypto Bull Run
Financial markets are highly unstable, and whether it is the age-old stock market or the newer cryptocurrency market, they are all unstable. One cannot predict the next crypto bull run because no one exactly knows when the crypto market will be a bull market or a bear market. This volatility accounts for both the bear and bull runs experienced in the crypto market.
For investors new to the crypto market, there are key differences between a bull run in the stock market and a bull run in the cryptocurrency market; what then is a crypto bull run? A Crypto bull run is a period in the crypto market where crypto investors buy. It results in rising prices in the crypto market because demand is greater than supply.
In a crypto market, when the demand is greater than the supply, it leads to an increase in price, and when this happens, it is referred to as a crypto bull run. Investors are mostly the ones who trigger crypto bull runs. Still, other factors, such as external, social, or political factors, trigger crypto bull runs.
Inflation can also trigger crypto bull runs; when people take cryptocurrency as a hedge against inflation, it might trigger the next bull run—an important factor as well as the scarcity of cryptocurrencies. When there is difficulty in producing more currencies, the few available are mined, called halving.
Meaning of Bull Market
A bull market is a time or period in which prices are rising or are expected to rise in the financial market. It usually occurs due to excessive demand when the supply is limited. The term is predominantly used for stock markets. Still, you can apply it to other assets or trade, such as bonds, commodities, currencies, etc.
Bull runs frequently involve high stock prices, rapid economic expansion, and a high level of investor confidence in the economy. It is usually characterized by optimism and the belief that strong results will be sustained for a long period.
Bull markets are often difficult to predict as no specific metric is used to predict the direction the markets will take. It is important to note that bull runs usually occur when there is high economic growth and a strong economy.
During this period, there is a tendency for the investors' confidence to be high; the supply would be weak, while the demand would be strong. As a result, investors would be willing to buy stocks, and only a few would be willing to sell. During the bull market, investors are willing to be involved in gaining profits.
What is Bear Market
A bear market is the opposite of a bull market, and it is characterized by a price fall. When the supply is more than the demand, it leads to a fall in prices. It is used to describe the fall in the price of an asset or commodity by more than 20% from its price at its most recent high. A bear market happens several months ahead of a decline or recession, just like a bull market occurs during economic buoyancy.
Instead of buying in the market, investors want to sell for the safety of their investments or fixed-income securities. Bear markets are part of the economic cycle; they happen several months ahead of a recession, but it does not necessarily mean after a period of a bear market, a recession follows; most times, it is not always the case.
Various factors cause bear markets, such as public health crises like the recent COVID-19, which caused a bear market, the war between Ukraine and Russia, low economic growth, etc. Hence, they are often referred to as secular factors. The cyclical factor, on the other hand, happens as a result of the volatility and instability of the market.
When a bear market starts, investors tend to mistake it for normal day-to-day fluctuations, not until it becomes constant before scrambling to sell their stocks. When observed, investors' confidence drops significantly, leading to panic selling. It gets to a stage of stabilization, usually the longest of all; the prices have already declined at this stage. Some investors buy cheap, anticipating when the stocks will rise again.
Bull Market Example
Once the crypto market is experiencing a bull market, it implies a lot of money in circulation; this can be for a sustained period of months. A bull market is a common term in cryptocurrency, and bitcoin happens to be the bullish digital asset among other currencies.
Some examples of bull markets include;
Bitcoin Bullish Market Trend
Despite its massive volatility, Bitcoin is one of the cryptocurrencies with the most prominent digital asset as it is currently experiencing a bearish trend. In 2011, Bitcoin had its first crypto bull run from $1 to $32 per coin. Unfortunately, towards the end of 2011, it dropped to $2.
This spanned throughout 2012, and by 2013, Bitcoin experienced another bull run from $13 to $1000 before dropping to $530. By 2021, the value of Bitcoin skyrocketed to $64000, but before the end of 2021, it dipped as low as $35000. At the moment, bitcoin is experiencing a bear run, but there are indications that a bull run is about to hit.
Apart from bitcoin, a bull market lasted from 2002 to the end of 2007, coinciding with the financial crisis. This bull market lasted long before it crashed into a bear market. Therefore, we should expect a bitcoin halving before the next bitcoin bull run occurs.
Crypto Currencies Ready for Bull Run
The current stage of the cryptocurrency market has made many investors think about the future of their digital assets. New investors in cryptocurrencies have several options to trade in. However, the question is which of these is the best choice to invest in.
There is a list below of some significant capital-digital currencies you can choose from; Scroll down the paragraphs below.
Bitcoin
Bitcoin is one of the top three most potent cryptocurrencies in the world. However, it has high volatility and remains the leading currency in the crypto market because its long-term investments are more profitable.
Although bitcoin prices dropped globally, which sent shivers down the spine of Bitcoin investors as they are afraid for their investments, experts have predicted that it will rise again very soon; this shows how massively volatile it can be.
Also, with the investment of many companies and businesses in Bitcoin, it is expected to get ready for a bull run very soon.
Ethereum
Ethereum, also known as Ether, is next to Bitcoin in the league of powerful cryptocurrencies. However, the recent record shows a strong tendency to outshine Bitcoin with the rate it is moving, especially after the upgrade in 2021.
In the world of the crypto market today, Ethereum has the most potential. Still, it also has high volatility like Bitcoin. Therefore, investors are advised to have a plan that will not negatively affect their investments in cases where volatility affects the market.
One thing about Ethereum is that its coin has good computing power, which attracts investors. However, it is not for investors who are in a rush to start making money immediately, but for those with plans..
Market Capitalization in a Bull Market
Market capitalization in a bull market can be very challenging for future crypto investors or new cryptocurrency investors. However, before the bull market, those already into crypto investments knew how the market operated and had a backup plan.
Crypto trading is all about strategic planning because the market is not in the control of the investors. There can be a high tendency to hit a target, and suddenly the market crashes due to unforeseen circumstances. This explains the volatility of the bull market and the need to factor in risk as part of the plan; otherwise, the investor is planning to fail.
For an investor to efficiently capitalize on a bull market, there must be a firm plan on the ground that will not affect the investment negatively despite the market's volatility. Furthermore, since the market's instability is not under investors' control, the plan must also be such that your investment does not crash with every data that affects the importance of cryptocurrency.
Also, before investing in any cryptocurrency, it is advisable to take time to understand the process of the currency and the possible risks of investment. Having a more profound knowledge of any investment will help in predicting your plans. Also, don't be influenced by those selling after every dip; stick to your trade plan and follow it.
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Best Crypto and Forex Training Course
There is no doubt all these things may seem a bit technical to follow. In fact, the price makes so many wild swings each day that it can be very hard to measure buying pressure or selling signals. Also, learning all the technical analysis you need for forex takes more than just a day. Instead of relying on the odd article here and there, you may want to get a full detailed course to take you through all these situations.
Here is where the idea of the Asia Forex Mentor by Ezekiel Chew comes in. The course is a robust introductory guide that will give you the knowledge you need to trade forex. It's a beginner-friendly guide as well that works for folks who want to trade forex and any other financial asset.
The Asia Forex Mentor will not just teach you how to predict price shifts, daily volume, and these other technical indicators. It will also teach you how to manage capital and explore some of the most advanced risk control measures in the world. After all, as long as you are managing your capital correctly, identifying overbought and oversold pairs will be the easier part.
Also, if you are an advanced trader looking to learn some of the tricks used by leading banks, this course is also ideal. As a matter of fact, The Asia Forex Mentor is developed by someone who has taught some of the leading investment bankers how to trade forex. You will be able to identify a losing trade, gauge price movement under immense trading pressure, and maintain a level head even when the markets are volatile.
Conclusion: Crypto Bull Run
Suppose you have foreknowledge of the stock market. In that case, you will be able to understand the whole concept of cryptocurrency because they're similar digital assets. To wrap it up, the most important thing is to strategize and plan on any investment before investing carefully. And once you devise a trading plan, stick to it against all odds and don't always follow the crowd.
Crypto Bull Run FAQs
Is the cryptocurrency bull cycle over?
Nobody can be certain that the bull cycles in cryptocurrencies have ended. The cryptocurrency industry is known for its unpredictability. For a significant portion of 2022, the cryptocurrency market has been on a bull run (no, we are not disregarding the May meltdown).
One can reasonably be sure that this bull won't hit a fence anytime soon, despite the fact that it has undoubtedly experienced some dips. After all, this bull run had surpassed all of its projections and attracted a lot of attention when Bitcoin first crossed the $65,000 threshold.
Create a profitable trading strategy, stick to it, and hold long-term positions.
What is the cheapest currency to buy?
The primary measure of a nation's economy, financial situation, level of foreign investment, and GDP rate is the value of its currency. Most of the time, currencies are compared to US dollars in order to gauge their strength; nevertheless, certain currencies are compared to pounds sterling.
When searching for the cheapest currency to purchase, consider the capital size of its rivals that offer the same utility. The currency that has the smallest capitalization is the least expensive one.
