A bull market or bull run is often defined as a ripe market period when the prices of a certain asset are on a constant rise. The accelerated prices are a product of multiple market factors including volatility, demand, and market valuation.
Crypto bull run or "bullish crypto market" denotes a stable market period when the prices of cryptocurrency are consistently rising without witnessing any downward price movement.
Here's what it means.
What Is Crypto Bull Run?
A crypto bull run is a market period when the prices of any crypto asset are stable and consistently rising. This is the time in a financial market when investors express a great interest in an asset, accelerating accelerates its demand.
In the end, the demand of the said crypto-asset outweighs the supply exhibiting a bullish sentiment among investors.
Similarly, a crypto asset sees a consistent rise in prices, this means that that particular crypto is exhibiting a bullish run. The process that stimulates the prices of a crypto asset is interlinked directly with the sentiments of the investors.
According to Coinbase: "As investor confidence rises, a positive feedback loop emerges, which tends to draw in further investment, causing prices to continue to rise."
When Is The Next Crypto Bull Market?
According to recent reports, the major crypto bull market began in 2021. With occasional dips and crashes, the price momentum of BTC throughout 2021 remained high without exhibiting any reversal pattern that generally denotes a bearish market outlook.
Many market experts have recently stated that the following bull market run will continue to dominate 2022. Here, investors can see occasional price dips and ascents with Ethereum merge date drawing closer, but an overall market sentiment will remain high and positive exhibiting a bullish run which is evident in the Ethereum NFT sector.
According to CNBC, the market analysts predict that despite the looming pandemic risks, the prices of Bitcoin will portray a positive outward price trend.
"There is more of a chance for an upside surprise versus downside surprise, there is still a chance that we get the year-end rally, especially as investors start to look towards 2022." As stated by Mahajan, Edward Jones' senior investment strategist.
According to Mahajan, the biggest drivers for Bitcoin bull run in 2022 might include relatively strong consumer spending, strong corporate earnings growth in the US, and a positive 2022 economic growth outlook.
However, as we've seen with the recent price crashes and sentiment changes, 2022 has not started off well for these bull run predictions.
The rising inflation, along with the downfall of major crypto lenders like the Celsius network, Voyager and babel have also fueled the bear market sentiment, making it difficult for the masses to invest in crypto for the time being.
On the other hand, the leading exchange Coinbase was also embroiled in bankruptcy rumors, making it perplexing for users to trade at the moment.
Recently, Coinbase CEO Brian Armstrong further shared that the current crypto winter may extend up to 12-18 months.
[image by Hans Eiskonen/Unsplash]
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