A bull market is characterized by rising asset prices and investor optimism. In a bull market, there is increased buying activity due to general economic or asset class confidence. Investors anticipate greater gains as prices rise, creating a positive feedback loop.
Investors are more willing to purchase and retain assets at these times in the hope that their value may rise further. Historically, crypto bull markets have occurred at various times, notably in 2017, during the initial coin offering (ICO) boom, when Bitcoin reached an all-time high nearing $20,000.
Another significant bull market emerged in 2020-2021, highlighted by Bitcoin’s surge to over $60,000 and increased mainstream adoption of cryptocurrencies. These periods witnessed extensive price surges across numerous digital assets, fostering widespread investor enthusiasm and market growth.