Bull markets are part of the market cycle, wherein assets’ prices rise gradually or significantly. Other than the cryptocurrency, bull markets occur in other financial markets as well, whether it is gold, stock, fiat currencies, etc.
Bull markets result from positive economic growth, increased interest in the asset, positively influential news and more. Investors, therefore, have been found to hold on to their assets longer or collect more in hopes of attaining more profitable gains as their price increases.
The Term’s Origin
The term Bull Market is defined as it refers to the motion of a bull attacking upwards, which is similar to the upward direction of an asset’s price within a market.
Behavior during Bull Markets
During bull markets, assets’ prices elevate continually, inevitably attracting the interest of investors through the green signal of positive appreciation.
However, investors are highly advised to take the factor of market volatility into account as investing in such times can be risky. It is crucial for one to conduct adequate research and investment strategy before investing to better understand and manage the risks associated with investment.