How Long Does a Bull Run Last in Crypto?
If you’re a cryptocurrency enthusiast, you may have asked yourself before, “How long does a bull run last in crypto?” Bull runs are powerful phenomena that can allow you to increase your investments’ worth, so it’s important to know how to leverage them to your advantage. In this article, we will cover what a crypto bull run is, factors that impact their length, and how you can use Bitcoin ATMs to navigate your next bull run.
What’s a Crypto Bull Run?
Before determining, “How long does a bull run last in crypto,” it’s important to delve into the term’s history. Bull runs are not a concept limited to cryptocurrency; in fact, this term originated with the traditional stock market. A bull run, also called a bull market, is an extended period in which most stocks are rising in value. This is generally an indicator that the economy as a whole is doing well. As such, along with stock prices, levels of optimism increase. Investors are likely to increase their investments at this time so that they can reap greater rewards from the bull run.
When it comes to crypto, bull runs are quite similar. Much like in the stock market, crypto is said to be in a bull run when most stocks are steadily rising over time. Unlike in traditional stocks, there is one company to watch in order to determine if a bull run is imminent: Bitcoin. Bitcoin makes up more than 50% of the total crypto market cap, and its level of success is indicative of how the rest of the crypto market is performing.
All this to say, in order to determine if a crypto bull run is coming, monitor Bitcoin’s stock performance. If it is currently increasing and continues to do so, then it’s likely your investments—no matter which coins you choose—will also be rising in value.
How Long Does a Bull Run Last in Crypto: Influential Factors
While it would make life simpler if there was only one answer to, “How long does a bull run last in crypto,” there are a variety of factors that influence the length of a crypto bull run. After all, a bull run can be as short as a couple months, and as long as several years.
As you navigate the crypto market, be mindful of these factors that could impact your investments:
New Government Policies: If the government recently introduced legislation that promotes crypto growth and makes investing more accessible, you can expect a new bull run to begin. If a bull market is already in motion, the policies will most likely cause it to last longer.
Media Attention: Crypto can become much more mainstream due to media exposure. When a major network improves the public’s knowledge of cryptocurrency, many audience members will begin their investment journeys. This influx of attention and trades could promote a bull market.
Technological Development: As new technology improves access to Bitcoin and makes it easier than ever to complete trades, those who otherwise feel daunted by investing in crypto will take a chance and start investing. This increase in transaction volumes will cause the bull market to last longer.
Increasing Market Capitalization: If market caps are trending upwards, crypto fans will be tempted to trade so as to maximize their investment returns. This could promote bullish tendencies.
Increased Market Engagement: If transaction volumes increase, so too will the value of crypto. This will extend the duration of the bull run as well.
Macroeconomic Factors: If the economy on the whole is rising in value (i.e. inflation is occurring), then this is a sign that the crypto market will trend the same way. When the economy continues to perform well, you can expect your investments to grow.
As it relates to bull runs’ beginnings, one of the events that is most closely linked to bull runs is Bitcoin halving. Halving occurs approximately every four years as a means of increasing Bitcoin scarcity. Leading up to and following halving, Bitcoin transaction volumes drastically increase, promoting a bull run. Past halvings occurred in 2017 and 2021, and investors observed this pattern take place.
Navigating Bull Run Investment Risks
While bull runs can be a great chance to increase your investment returns, exercise caution when completing transactions. Many other investors will be trading at the same time, making the market highly volatile. It doesn’t help that drastic crypto bull markets are often succeeded by extreme economic downturns (referred to as bear markets); this causes the crypto’s worth to plummet. Indeed, many crypto enthusiasts have lost significant investments during past bull runs due to investing recklessly.
Here are some ways to responsibly invest:
Diversify Your Crypto Portfolio: Investing in only one form of cryptocurrency is risky; if the company’s stocks lose their value, then you’ve lost all of your investment. However, by investing in several different kinds of crypto, you’re more likely to have at least one currency that is performing well in the market.
Cash Out Early: If your investments have greatly risen in value, convert your investments back to cash before a bear run takes place. While some traders choose to wait and see how much their investments grow, this leaves them at risk of losing all their money.
Rely on Pelicoin for the Next Bull Run
When it comes to bull run trading, nothing is more important than being able to complete your transactions quickly and securely. With the power of Pelicoin Bitcoin ATMs, you can do both.
Our Bitcoin ATMs, also known as BTMs, are located throughout the Gulf South in convenient locations like grocery stores and gas stations. Our kiosks are designed to be used while you’re on the go; we seek to make Bitcoin as accessible as possible. That’s also the reason that we create user-friendly interfaces for our BTMs. You can trade within the span of minutes with Pelicoin at your side!
Curious to discover more tips about investing in crypto? Check out our blog to learn more. For any questions about our services, please contact us today.