Bull Market
In short: A bull market is a prolonged market uptrend in which prices rise broadly for months and optimism grows.
A bull market is a prolonged market uptrend in which prices rise broadly for months and optimism grows. A rise of 20% or more from a previous low is a common rule of thumb in traditional finance, and the name is often linked to the way a bull thrusts its horns upward.
Why it matters
Bull markets bring higher trading volume, deeper order books and waves of new users and projects. They also encourage risky behavior, such as FOMO buying, heavy leverage and purchasing tokens with little research. Prices rarely move in a straight line, so sharp corrections happen even inside a strong uptrend, and a period of excess can end abruptly. Recognizing the phase helps users tell whether a price move reflects the whole market or one specific asset.
Example
Over many months, the leading cryptocurrencies set a series of higher highs and higher lows. Trading volume climbs, new listings draw large crowds and headlines turn enthusiastic. A drop of several percent in a single week does not end the trend, because buyers keep stepping in at higher levels than before. That sustained pattern of rising prices and broad participation is what traders call a bull market.