Crypto is volatile, and prices of digital assets can swing wildly with the slightest shift in news or trends. Factors such as announcements, market sentiment, adoption rates, and regulations have immense power to alter cryptocurrency values on any given day.
Crypto volatility offers investors the potential for substantial profits. However, it’s essential to remember that these investments come with a much greater risk than traditional financial instruments. Before investing in cryptocurrencies, you must carefully evaluate your risk tolerance and set aside only what you can afford to lose. Another important thing is to work with a reliable crypto platform, where you can be confident about your funds’ safety. An example is the largest crypto exchange in Europe – WhiteBIT. Today, we will discuss what is a crypto bull run and how people earn on it.
What are the Trends in Crypto?
If you hear people talk about a “bull market” in crypto, it means that the broad market is experiencing an upswing with strong investor optimism and high buying activity. Prices are typically rising rapidly while trading volumes remain elevated during this period. This all stands in stark contrast to a bear market, which indicates declining prices due to dampened enthusiasm and pessimism regarding the future successes of cryptocurrencies.
What Does the Cryptocurrency Bull Run Mean?
During a cryptocurrency bull run, the market often sees an influx of investors, pushing trading volumes and prices to new heights. This presents remarkable opportunities for those who have invested in digital assets at cheaper rates as they stand to make extraordinary gains from this trend.
Whether it be positive press about cryptocurrencies and blockchain technology, more people using them, or even market manipulation from major players, there is a multitude of reasons why a crypto bull run can occur. These include but are not limited to better news coverage of crypto assets, their wider adoption rate and utilization by the public as well as powerful entities trying to manipulate prices in their favor.
Savvy traders can capitalize on a crypto bull run and reap substantial profits by purchasing digital assets at lower rates and then selling when the market is moving upwards. Here are the most used strategies:
- “Buy the dip” – involves purchasing crypto assets temporarily reduced in price from corrections within an overall upward trend of the market before selling them at greater value when markets recover.
- For those with a tolerance for risk, another method is to capitalize on the bull market by trading cryptocurrencies frequently in order to obtain swift profits. Yet due to its extreme volatility, this approach carries higher risks than other methods of investing.
When will the next crypto bull run happen? There is no exact answer to this question, for there are too many factors affecting it – the global economy, inflation, media coverage, etc.