What is a Cryptocurrency Bull Run?

Published Sep 27th, 2022
Updated Mar 20th, 2023

A cryptocurrency bull run is a period when prices of cryptocurrency are consistently rising.

The terms ‘bull run’ and ‘bear run’ are borrowed from the stock market trades. In the traditional financial market, a bull run, also known as a ‘bull market’ is when stock prices are rising and are expected to continue to do so. Although many people think of a bull run as being when the price of cryptocurrency makes a rapid and consistent increase, technically, the term is traditionally used when referring to a financial occurrence of cryptocurrency (or traditionally stock) prices increase by 20% following two instances of the price decreasing by 20%. Bull markets are an investor’s dream and known when to hold and sell is a crucial skill when trading any financial asset.

What is a Bear Run?

Conversely, a ‘bull run’ is characterized by a steady drop in cryptocurrency or stock prices. It is quite common for a bear run to follow a bear run, and vice versa. However, when this decline happens too rapidly, it is referred to as a ‘market crash.’

A recent example of this in the cryptocurrency space is when there was a bear run on Bitcoin (BTC) in 2021 that culminated in its reaching an ATH value of $67,567 USD on November 8 that year. However, since hitting that mark it has been steadily declined, and as of July 18, 2022, it had dropped to $17,800 USD, which was the lowest it had been since December 2020.

Bull runs are caused by increased demand. There are many factors that can lead to this, such as widespread adoption, a bubble caused by market investors falling for hype when they see the value of a financial asset increasing and wanting in on the profits, artificial price boosts by whales, and many others.