Bull Market

In traditional finance (TradFi), the term ‘bull market’ is believed to have originated from a bull’s fighting style of thrusting its horns in an upward motion. Traders have since used this term to describe the overall market sentiment that exhibits a similar pattern — an uptrending price trajectory in which asset prices are rising or expected to rise.

The driving factors behind a bull market are the growth of an economy, such as the increase in a country’s gross domestic product (GDP), a growing employment rate, or low interest rates. However, apart from these quantifiable metrics, market sentiment — the overall perception of the financial market — also plays a huge impact on the psychology of traders in certain market conditions.

The bull market cycle is rather simple in the bigger picture: When these metrics seem favourable, it leads traders to buy. As more traders demand these finite assets, the prices increase.

Bull Market Indicators:

• Strong GDP
• High employment rates
• Strong demand for assets
• Positive market sentiment
• General interest in cryptocurrency in the mainstream media