Definition
A bull market is a market environment where prices of assets, such as cryptocurrencies, trend upward over an extended period. It is typically associated with optimism, growing confidence, and expectations that prices will continue to rise. In a bull market, demand for assets is generally stronger than supply, which supports higher price levels.
This concept contrasts with a bear market, where prices trend downward and sentiment is more negative. In a bull market, higher prices and positive expectations can influence market sentiment and contribute to increased trading activity. Bull markets can occur across the broader crypto market or within specific coins, tokens, or sectors.
Context and Usage
The term bull market is often used to describe a phase in the market cycle when many assets repeatedly make higher highs over weeks, months, or even years. During these periods, volatility may remain high, but the dominant direction of price movement is upward. Market participants may refer to the overall environment as a bull market even if individual assets experience temporary pullbacks.
In crypto trading, a bull market can influence expectations around slippage, funding rate dynamics in derivatives markets, and how traders interpret shifts in market sentiment. The label does not guarantee continuous gains but signals that the prevailing trend and outlook are broadly positive compared with a bear market phase.