The Bitcoin market is pretty new to some people. It’s only been around since 2009, and because of that, it can confuse some people. But anybody interested in new technology knows about this cryptocurrency. What’s more, you’ve probably heard about Bitcoin’s bull and bear markets. Peruse more about interesting crypto trading platforms by reading the reviews on trustpedia.io
Whether you invest in stocks, cryptocurrency, or real estate, you will hear experts talk about the bull and bear markets. And, there can be some misunderstanding about what these terms mean. For example, a bull market can refer to an increase in price, no matter how small.
In contrast, a bear market is when prices are falling. So, if the price of Bitcoin plunges by 10% in a day, traders and investors would consider that a bear market. Now that we know the difference between these two markets, let’s look at each in more detail.
What is a Bitcoin’s Bull Market?
A bull market is when prices are on the rise. Several reasons can cause this, but most importantly, it’s because there is more demand than supply for this cryptocurrency. When this happens, prices go up.
Bitcoin has had several periods of growth since 2009. For instance, Bitcoin’s price went from $13 to over $1,100 in just a few months in 2013. And this can happen due to several reasons, but it was primarily because more people were buying Bitcoin than ever before.
What is a Bitcoin’s Bear Market?
A bear market is when prices are falling. And this happens when there is more supply than demand for the cryptocurrency. When this happens, prices go down.
Bitcoin has had several periods of decline since 2009. For instance, Bitcoin’s price fell from its all-time high of $19,783 in December 2017 to around $3,200 in December 2018. And this was due to many reasons, though it was primarily because more individuals were selling Bitcoin than ever before. Also, some crypto exchanges closed down or were hacked during this time, making people lose faith in cryptocurrencies.
Bitcoin’s Bull vs. Bear Markets
So, what’s the difference between a bull and a bear market? Well, it’s pretty simple. A bull market is when prices rise, and a bear market is when prices fall. The main difference between the two markets is that buying drives a bull market while selling drives a bear market.
When there’s more buying than selling, prices go up. When there’s more selling than buying, prices go down. It’s that simple.
Why Care About Bitcoin’s Bull and Bear Markets?
You might wonder why you should care about Bitcoin’s bull and bear markets. If you’re considering investing in Bitcoin, it’s essential to understand that the market can change anytime. Just because prices rise now doesn’t mean they will continue to increase. Similarly, just because prices are falling now doesn’t mean they will continue to fall.
By understanding the difference between a bull and bear market, you can better prepare for whatever the market might throw at you. Knowing when to buy or sell can be the difference between making a profit or losing money.
Several factors influence Bitcoin’s bull and bear markets. However, the essential thing to remember is that more buying drives a bull market while more selling drives a bear market. This knowledge is vital for anybody interested in Bitcoin trading or investing. That’s because you need to know the best time to buy or sell. Timing is crucial in Bitcoin investing or trading due to the cryptocurrency’s volatility. Therefore, predicting when the cryptocurrency will have a bull or a bear market is vital to your success as a Bitcoin trader or investor.