Skip to content
The term “bull market” in crypto is generally understood to mean a period in which interest, optimism, and confidence in the market, in this case, the crypto market, increase steadily. To get more technical, a bull market is defined as a period in which cryptocurrencies increase by 20% or more from their recent lows and maintain that upward momentum. The term was originally coined in the seventeenth century, taking inspiration from the silhouette of a bull thrusting its horns into the air in a skyward gesture. The term is now so ingrained in modern financial rhetoric that in 1989, the bronze ‘Charging Bull’ statue was installed on Wall Street in New York City as a symbol of a thriving economy.
In this article, we dive into the definitions of a crypto bull market and bear market, look at the origin of each term, and take a closer look at what the analysts say about the current crypto bull run.
What is a bull market in crypto?
A bull market in crypto tends to mirror the trends and characteristics of traditional financial markets but with some unique twists and turns due to the volatility of the crypto market. As described above, a crypto bull market is identifiable due to its rising prices, often exceeding previous lows by 20% or more, and lasting over an extended period of time. A bull market in crypto is often driven by rising investor confidence, positive market sentiment, and a demand for riskier assets.
In a crypto bull market, dominant crypto Bitcoin and other major assets such as Ethereum often lead the charge, thus signaling market optimism. The increase in demand is fueled by factors such as technological advancements, regulatory clarity, or growing adoption by both institutions and retail investors. Unlike traditional markets, crypto bull runs can become even more intense due to speculative demand, which makes them particularly explosive yet unpredictable.
What is a bear market in crypto?
What goes up must come down. The downside to a bull market is a bear market, so-called by some due to a bear’s natural cycle of slowing down for the winter and preparing for hibernation. Others claim the term comes from a bear’s fighting stance, starting high, then attacking with all its might, pushing downwards through its claws. Whatever the origin, its definition is well understood today. A bear market in crypto is characterized as a period of time in which supply is greater than demand, confidence is low, and prices are falling.
During a traditional financial bear market, investment is slow, asset supply tends to be greater than demand, and unemployment is high, often the consequences of poor economic policies, geopolitical unrest, war, and even natural disasters. While bull markets see prices rise 20% or more above prior lows, bear markets feature a decline of 20% or more below previous highs. One example would be the crypto crash in December 2017, when Bitcoin fell from $20,000 to $3,200 over a matter of days.
Historical bull markets and bear markets in crypto
Some of the earliest bull runs in crypto history were seen back in 2013, when Bitcoin rose from around $145 in May to nearly $1,200 by December, representing a 730% gain, which was fueled by early adoption and technological developments. More recently, in crypto history, in 2021, Bitcoin increased by more than 1,300% between March 2020 and November 2021 to reach a new all-time high (ATH) of around $68,000. This surge was likely fueled by high-profile institutional investments in Bitcoin (such as Tesla and Microstrategy), high liquidity during the COVID-19 pandemic, and a growing interest in NFTs and DeFi.
This monumental surge was followed by a bear market, with Bitcoin’s price dropping 77% to around $16,000. This bear market stretched well into 2022 and was marked by two major disasters in the crypto space: the Terra Network collapse in May 2022, in which billions of dollars worth of crypto disappeared from the market, followed by the FTX collapse in November 2022, which resulted in more devastating losses and the incarceration of its founder, Sam Bankman-Fried.
Are we in a crypto bull market?
We are currently living through a historic crypto bull market in which many crypto prices have not only surged by more than 20%, but Bitcoin, in particular, has smashed through its milestone value of $100,000 to reach a monumental new ATH of over $108,000 (17th of December 2024). The question now being asked by many analysts is how long it will last. How far into 2025 can we expect this bull run to last? The current crypto bull market has been driven principally by major institutional adoption, technological advancements, global economic conditions, and market sentiment.
While the cryptocurrency market remains volatile and impossible to predict, many experts forecast that this bull run would last well into the new year. The factors driving the current price surge are expected to evolve further in 2025, including Donald Trump’s imminent presidency, enhanced regulatory clarity in Europe through the MiCA Regulation and the drafted FIT 21 in the U.S., and growing institutional investments from companies like MicroStrategy. While there are bound to be more corrections, the general trajectory for crypto, and Bitcoin in particular, is considered by many to be skyward, guided by the charging crypto bull.
For more on crypto trends or to learn how to integrate crypto payments into your business’ workflow, visit www.forumpay.com or get in touch with our sales team to discuss any questions you may have.
