In financial markets, different terms are used to explain the trends of investors. “Bear and bull market”, which is frequently used in the cryptocurrency industry, are from these terms. “What does the bear market mean, what is the bull market?” we will explain this questions in detail in the rest of article.
What is the Bull Market?
The bullish, i.e. "bull market" term, is used for the bullish situations observed in asset movements. The bull market can be thought of as the rising trend in asset prices. Economic growth has started in the bull markets and a rapid increase is observed.
The bull market is a market where investors' trust in cryptocurrencies increases. Investors have optimistic expectations for the future and increase their investments by taking more risks. Investors have optimistic expectations for the future and increase their investments by taking more risks. Examples of investor behavior in the bull market are long-term investments, demanding low-priced assets, diversification of portfolios. The growth of the US economy after the Second World War can be an example.
What is the Bear Market?
Situations in which there is shrinkage in the market and where the investor is in a pessimistic mood are generally defined as bearish, i.e "bear market". The bear was transformed into a metaphor with attacking the victim and was therefore used as a cryptocurrency industry term. In the bear market, pessimistic expectations about the future are taking place and the market is in a downtrend for a long time.
The main feature of the bear market is shown as high decreases in asset prices. Economic recessions cause less investors to trade in the market and pessimistic expectations. However, it is also stated by analysts that in the bear market there may be an opportunity for investors to buy with analysis and follow-up.
How Long the Bear and Bull Market Last?
Those trading in the cryptocurrency market should conduct market analysis correctly and lead their investments cautiously in the bear and bull market. How long this process will take may vary depending on the market structure.