The terms “bull” and “bear” migrated from traditional finance into the crypto industry and have become firmly established there. Let’s break down what a bull market means in cryptocurrency, why it is called that, and what characteristics typically define it.
Bulls are crypto market participants who believe an asset will rise.
“Bulls” are market players who expect prices to keep moving upward.
What Is a Bull Market and Who Are Bulls?
A bull market is a stage of the market cycle characterized by a long, steady increase in crypto asset prices and an overall upward trend. “Bulls” are the optimists—participants who expect growth and believe an asset’s price will continue rising. When asset values climb consistently, bulls tend to view future developments positively and position themselves for further upside.
Who Coined the Term “Bull Market”?
In finance, the term “bull” is almost always used alongside its opposite—“bear.” These concepts reflect two opposing market sentiments, and their origins are explained by several versions.
The most common explanation points to animal behavior: a bull attacks by thrusting upward from below—similarly, in a bull market prices rise from low levels to higher highs. A bear, due to its size and strength, pins its opponent down from above—much like prices steadily fall during a bear market.
Another version links the naming to the works of 18th-century Scottish satirist John Arbuthnot. In one of his pamphlets, a stock market character named John Bull (literally “Bull”) appeared as a trader with a bull’s head, opposed by a trader with a bear’s head. The metaphor appealed to Arbuthnot’s contemporaries and quickly entered everyday financial language.
What Can Trigger a Bull Market
There is no single indicator that can perfectly and in advance signal the start of a bull or bear market. Analysts typically look at a set of metrics, assess the broader context, and make probabilistic conclusions. It’s important to remember that not every price increase marks the beginning of a bull cycle, just as not every decline automatically launches a bear trend.
One commonly used rule of thumb for identifying the start of a new cycle is an asset rising by roughly 20% or more from a local bottom over several months. Even this criterion is conditional: the start of a stable trend is often confirmed after the fact, once there is enough time to evaluate the persistence of the move.
Macroeconomic events can also push markets higher, including:
- Political: the end of trade wars, government programs supporting business, signing of peace agreements;
- Economic: GDP growth, falling policy rates, lower inflation and unemployment, tax relief;
- Technological breakthroughs that create hype and drive prices up;
- Positive media coverage of economic and political developments.
It is also worth noting a recent trend: the crypto market is increasingly discussed as being correlated with the U.S. Federal Reserve’s policy rate, which the crypto community closely follows.
Psychology and social media play a major role in shaping crypto trends. For example, a well-known large company buys a significant amount of . News like this can trigger FOMO (, the fear of missing out) among retail participants, setting off a chain reaction: people start buying the asset, demand rises, and the price moves upward. Higher prices intensify FOMO, attract new participants, and again increase demand—repeating the cycle. If the macro backdrop is favorable, the momentum accelerates and the market can quickly transition into a full “bull” phase.
Phases of a Bull Market
In addition to events that may precede a bull run, several typical phases are often observed within the bull market itself:
Pessimism, or Accumulation
Because bull markets typically begin “from the bottom,” meaning from low price levels, the first phase is often described as pessimism. The market is coming out of a bear cycle, and the negative aftereffects are still felt. Some projects did not survive the previous cycle and shut down, and many participants realize losses. At the same time, some investors see an opportunity: to accumulate assets at depressed prices while they remain relatively cheap.
Skepticism, or Mark-Up
At this stage, prices remain choppy: longer upswings are followed by short pullbacks. Investors still approach the rise cautiously and skeptically, paying closer attention to analysis and metrics. Some market participants consider the move unjustified, although the media gradually increases interest in assets, drawing in new investors and fresh capital.
Optimism, or Distribution
Next, the uptrend becomes more stable: prices climb more confidently, volatility declines, and overall sentiment improves. Many believe that technical analysts often perform well here, and “buying the dip” on short pullbacks can bring solid profits to traders. This phase typically represents a clearly defined bull market.
Mania, or Euphoria
The final stage before another correction. The market is overheated, many participants are fully captured by FOMO, and prices may surge rapidly—sometimes barely reacting to negative news. Beginners often continue buying even during overheating, while experienced players more often try to close positions and lock in profits. Those exiting at this stage increase sell supply, building pressure that can eventually transition the market back into a bear cycle.
Looking back at past cycles, these phases are usually easy to identify. A bull market can last from several months to several years—both in crypto and in traditional markets. In crypto, a bull trend often leads to growth in — other cryptocurrencies besides bitcoin. The rise of altcoins is also referred to as “”.
In traditional finance, a bull market can be tracked through the S&P 500’s move in 2003–2007. In crypto, trend changes are more often associated with bitcoin—specifically, its halving. The most recent bull market was recorded in 2025. It was preceded by events in 2024: bitcoin’s fourth halving, the SEC’s approval of spot bitcoin ETFs, institutions building their own bitcoin reserves, as well as the election of a new U.S. president who showed a more favorable attitude toward cryptocurrencies.
The climax and final phase of the 2025 bull market was bitcoin reaching an all-time high of $126,198 in October. At the moment, the bull cycle has ended, with bitcoin falling below $90,000. After a sharp decline of the leading cryptocurrency in November, the index dropped to 10 points out of 100, indicating an extreme level of fear in the crypto community.
How to Behave During a Bull Cycle
Events during a bull market can be highly впечатляющий and create false expectations. That is why it is crucial to keep a cool head, understand what is happening, and remember that every cycle ends at some point. Many beginners who arrive during a bull run end up losing money and becoming disappointed. To reduce the chances of this outcome, it helps to focus on basic analysis and risk management. Experts typically recommend the following:
- Always do your own research on an asset: study its price history, developer documentation, and the community around the project. During bull markets, an asset can become overvalued due to high “greed” readings.
- Apply basic portfolio risk-management rules—diversify by spreading funds across different assets rather than concentrating in one.
- Use stop-loss and take-profit orders, as well as limit orders. Use trading tools carefully, especially leverage: it is better to learn the theory and mechanics first and only then make decisions.
- Stick to a long-term investing strategy — .
The most important thing is not to panic, avoid FOMO and emotional overheating, and not make impulsive decisions. It can be sensible to watch the “Fear & Greed” index: if it is above 75, that often signals extreme greed among participants. If even non-specialized media are writing about bitcoin, if your grandma asks which coin to buy, and new projects jump 500%+ over a weekend—it’s time to be cautious and think ahead about how not to lose everything.
A bull market is not just prices moving up, but a distinct phase of the market cycle shaped by macroeconomic factors, technological progress, and participant behavior. It moves through several stages—from pessimism to euphoria—and inevitably ends with a correction. Understanding these mechanisms helps investors make more balanced decisions, control risk, and stay rational during periods of market hype.