Are Bitcoin ATM Rates Cheap?
If you’re familiar with the traditional stock market, you may be familiar with the concept of bull runs. But did you know that they occur in cryptocurrency markets, too? Whether you’re new or old to crypto trading, Pelicoin is here to provide all the answers you need to the question, “What is bull run in crypto?”
Defining Traditional Bull Runs
In order to understand how a bull run works in Bitcoin, it’s crucial to establish its original meaning in the context of the stock market. A bull run, also called a bull market, is a prolonged period of time in which most stocks are increasing in value. While there is no formal manner of measuring them or calculating what does or doesn’t count as a bull run, many economists classify them as a 20% increase in a stock’s value since its most recent low. Due to the favorable state of the market at that time, investors are more likely to complete trades.
The opposite of a bull run is a bear run, which implies that a stock’s value is steadily decreasing over time. Once again, the 20% rule marks the beginning of a bear market, though in this case, it’s a loss of 20% of a stock’s value since its latest high.
What is Bull Run in Crypto and How Does It Differ?
Cryptocurrency markets are infamously volatile and prone to shifting in value rapidly due to their smaller market sizes. So, how is bull run measured in this case? Bull and bear runs still hold the same meanings as before (marking an up- or downturn in crypto value), but the starts of these periods tend to be heavily dependent on Bitcoin. That’s due to the fact that more than 50% of all worth in the cryptocurrency market falls under the Bitcoin umbrella. As such, traders generally see a significant boom in Bitcoin as an indicator of a bull run in the rest of the crypto sphere.
What Starts a Bull Run?
Now that “What is bull run in crypto?” has been answered, it’s vital to determine what causes a crypto bull market in the first place. There are a few different reasons this might occur.
Large-Scale Economic Factors
Ultimately, although cryptocurrency and the traditional stock market are two separate trading entities, they are both directly influenced by the economy at large. Monitoring national economic trends, such as inflation, can help predict whether a bull run should be expected in the near future. Likewise, it’s important to keep track of risks to the economy so you can determine whether a bear market is coming.
Bitcoin Halving
Approximately every four years, Bitcoin halving occurs. Halving reduces each individual Bitcoin’s worth to maintain the currency's scarcity. It causes traders to complete a higher volume of transactions than usual, and the value of Bitcoin increases directly before and after halving. The most recent halving was on April 19, 2024, so crypto enthusiasts should expect Bitcoin—and the crypto market as a whole—to enter a bull run soon.
Mainstream Apps Supporting Crypto
When major financial services companies, such as PayPal, Fidelity, and Visa, start offering crypto services, a bull run is often imminent. Because these platforms are very accessible to the general public, new investors may be curious enough to experiment with crypto investments since they trust in these well-known apps. This influx of new traders naturally connects with a higher volume of trades, stimulating the crypto market and causing it to rise in value.
Access to Bitcoin ATMs
Recent news indicates that at the beginning of July 2024, there were over 38,000 Bitcoin ATMs available worldwide, nearly setting a record high. The quantity of Bitcoin ATMs also referred to as BTMs, has been steadily increasing since July 2023.
It appears that increased access to physical Bitcoin trading locations has a similar impact on the cryptocurrency market as the ability to trade in PayPal, Fidelity, and Visa. Being able to trade while on the go and in a secure format encourages new traders to set foot into the crypto market, once more triggering a bull run.
Bull Run Investment Considerations
Because bull runs signal that a cryptocurrency’s value is increasing, many investors seek to take advantage of the market’s growth. The traders decide to increase how often they trade and/or increase the quantity of cash per trade, given that their goal is to grow the worth of their crypto.
However, as previously stated, cryptocurrency is notorious for its volatility. If you intend to trade during a bull market, be cautious of over-investing. In the past, prominent Bitcoin bull runs—such as occurred in 2017—were followed immediately by plummeting crypto values, causing major traders to lose their investments.
In order to avoid such a fate, trade cautiously during the bull run. Monitor news regarding how the stocks are performing, and rely on diversifying your crypto investments versus placing a lot of value in a single type of coin. This will ensure that even if one of your coins performs poorly and drops in value, you won’t lose all of your investments.
Trust in Pelicoin, the Gulf South’s Most Secure BTMs
When it comes to figuring out, “What is bull run in crypto?” Pelicoin always has the answers you need. We are a Bitcoin ATM business based out of the Gulf South, and we offer 40+ trading locations in four states.
What is it that sets Pelicoin apart from other Bitcoin ATM companies? We pride ourselves on offering extremely secure trading services, allowing our customers to minimize trading risks, such as having their personal information stolen or currency hacked. We do all this while also ensuring that our BTMs are straightforward and easy to use. They are formatted like standard ATMs, providing users with a recognizable, intuitive interface, and they also include additional operating instructions, should you need them.
If you’re looking for a secure way to trade during Bitcoin’s next bull market, rely on Pelicoin for your transaction needs. To learn more about us, check out our blog for the latest crypto news or send us an email.