Whether it’s the traditional stock market or the crypto market, they are described in one of the ways: either as a bull market or a bear market. This characterization is based on the behavior of the market, akin to the attacking styles of the respective animals.
A bull market is characterized by a period where most investors buy, demand surpasses supply, market confidence is high, and prices rise. If you observe rapidly increasing prices in a market, it may indicate that investors are optimistic or “bullish” about further price increases, signaling the onset of a bull market.
A bear market is defined as a period where supply exceeds demand, confidence is low, and prices fall. Investors who are pessimistic about future prices and expect them to continue dropping are termed “bears.” Bear markets can be difficult to trade, especially for inexperienced traders.
