Bull Run – Understand How This Phenomenon Influences Cryptocurrencies

Bull Run – Understand How This Phenomenon Influences Cryptocurrencies

 Recent moves in the cryptocurrency market, especially when it comes to Bitcoin, have caught the attention of many experts. There are those who believe that we are witnessing a new crypto bull run in investments.

But what is this phenomenon? After all, how does it interfere with digital currencies? Keep reading to understand how it works!

What is Bull Run?

Bull run is a term that is literally taken from “running the bulls”. This expression refers to the bull market, which is a very important concept to understand the behavior of investors in a particular asset.

So, while the market is called bull, it means that it is active, strong and showing good growth rates. This is the opposite of the bear market, “bear”, which is when movements are calm and hibernating.

Basically, the ideal for any asset is to buy while the trend is bear market for a cheaper price and sell when bull, guaranteeing the profit generated by the difference in values.

Because of this, it is necessary to be aware of this movement. Accelerating the purchase of cryptocurrencies can generate a bubble and cause its price to rise considerably until it bursts.

Are we Experiencing a Bitcoin Bull Run?

Between May and June 2020, the movement of Bitcoin bull run reached levels similar to those of 2016. This generated a state of alert among investors, as this could be an indicator that the historic high could be repeated.

In any case, many experts say there is no need to despair. While in 2017 there was an unpredictable and relatively new move to the cryptocurrency bull run market, this current growth tends to be less volatile and more expected.

A good tip to ensure good returns in this transition from bear and bull market is to invest in the Dollar Cost Averaging (DCA) strategy. This way, you will have more stability when a new race occurs.

Henry Taylor
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Henry Taylor

Henry Taylor is a seasoned crypto news writer with a passion for exploring the intersection of blockchain technology and finance. He brings insightful analysis and in-depth reporting to the forefront of the crypto industry.

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