What is a Bull Run in Crypto?

Key Takeaways

• A crypto bull run is a period of rising cryptocurrency prices, driven by optimism and increased inflows.
• Factors like media hype, institutional investments, blockchain advancements, and economic shifts have fueled previous crypto bull runs.
• The signs of an impending bull run include high trading volume, increased media coverage, favorable economic news, and a decrease in Bitcoin supply on exchanges.
• To navigate a bull run investors should avoid impulsive decisions, set clear goals, diversify their portfolios, and have an exit strategy to manage risks.

Cryptocurrencies are known for their volatility, with massive price swings regularly making headlines. During a crypto bull run, the value of  crypto assets climbs rapidly, with this price action attracting more investors, further fueling the bubble. Bitcoin’s price history is a great example of this dynamic in action, with the market surge following the US Election highlighting how growth can be a self-fulfilling prophecy in the crypto market.

Aside from hype and potential profit, crypto bull runs (closely related to crypto bubbles) are something of a high water mark, reflecting big events in the cryptoverse and sometimes external factors. For beginners entering crypto, understanding why bull runs happen is key to getting familiar with the crypto market, and making informed decisions.

In this guide, we’ll define the term crypto bull run, explore some past examples, and examine the various factors that drive them.

What is a Crypto Bull Run?

In the simplest terms, a crypto bull run is a period when cryptocurrency prices rise sharply over an extended period. Unlike a bear market, where prices and market confidence fall, a bull market is marked by optimism, increased investment, and an overall positive sentiment across the market. 

As a result, this trend can lead to price surges for major assets, like Bitcoin and Ethereum. and many altcoins.

Crypto Bull Market vs. Bear Market

To properly understand the phrase bull market, it’s helpful to understand its opposite: the bear market. 

While rising prices and positive sentiment define a bull market, a bear market is the opposite—marked by declining prices, pessimism, and low trading activity.

This can be triggered by a global event: for example, the 2018 bear market was marked by a trade war between the United States and China, as well as sudden interest rate hikes by the Federal Reserve. The 2022 bear market was catalysed by geopolitical tensions and a series of crashes in the crypto market.

The Stages of a Crypto Bull Run

Bull runs typically go through several stages. Each of these stages has a couple of notable characteristics:

1. Early Accumulation: In this phase, early investors and market insiders start accumulating assets at relatively low prices. The general public might not yet be aware of the potential for a bull run.
2. Awareness Phase: As more people notice the rising prices, initial news coverage begins, and more investors get interested.
3. Media Attention & Hype: Media outlets, influencers, and prominent figures start discussing crypto. This creates hype and brings in a wave of new investors, often causing rapid price increases.
4. Profit-Taking: At this point, experienced investors may start selling assets, locking in profits as the prices peak.
5. Correction: Prices stabilize or fall as the hype fades, and some investors exit the market. The market then enters a consolidation or bear phase.

Recognizing the Signs of a Crypto Bull Run

Spotting the signs of an upcoming bull run can be difficult. With that said, several indicators can help you anticipate one:

• High Trading Volume: Increasing trading volumes across major exchanges strongly indicates rising interest and demand.
• Media Coverage: When mainstream media outlets start covering crypto regularly, it often means a bull market is gaining momentum.
• Positive Economic News: If there are announcements of large investments, new technology implementations, or government endorsements, a bull run may be on the horizon.
• Rate Cuts: If governments start lowering the bank rates, it’s often a good indication of upcoming economic growth.
• Low Bitcoin Supply on Exchanges: If data shows that Bitcoin or other cryptocurrencies are being moved off exchanges, it can signal that investors are holding in anticipation of price increases.

History of Crypto Bull Runs

Throughout the relatively short history of the crypto market, there have been several significant bull runs. Each of them had distinct characteristics but often followed similar patterns:

2013 Bull Run

• Financial crisis in Cyprus
• Cyprus government taxing bank accounts
• Bitcoin as a new store of value, reaching $1,200

Five years after the launch of Bitcoin, the cryptocurrency still hadn’t made it onto most people’s radar, and BTC began 2013 hovering around $140. But that would soon change: a financial crisis in Cyprus led to a notorious bailout deal that required the Cyprus government to tax people’s bank account deposits, whether they agreed or not. The crisis hit headlines across the world and catapulted Bitcoin into the public consciousness as a way to store value beyond governmental reach. The price of BTC exploded, finishing the year at $1,200 and igniting interest in other crypto projects. The run was only cut short by the Mt. Gox hack.

2017 Bull Run

• ICO boom, attracting investors from around the globe
• Crypto market reaching $535 billion
• Bitcoin reaching over $17,000

At the start of 2017, BTC remained a household name – but the wider crypto industry was still in its infancy, and seen as a niche for tech and finance degens. But a transformative 12 months saw the sector explode, finishing the year with a staggering $535 billion valuation. This is largely down to the notorious ICO boom of 2017, which attracted a wave of new retail investors into the space. Through ICOs, users from all over the world were suddenly able to participate in the digital economy. Throughout this bullrun, Bitcoin reached a new high of nearly $17,900.

2020-2021 Bull Run

• COVID shutdown creating new investors
• Bitcoin payment integrations
• Bitcoin hitting a new all-time high of $67,000

After a challenging 2018 and 2019 for crypto, the market saw an incredible bull run in 2020 that took Bitcoin to over $67,000. This was largely fueled by institutional interest and high-profile endorsements, as well as advancements in blockchain technology. Global events also played a major role. The COVID pandemic shut down travel and more people were online than ever before, leading to more investors. In the same period, Tesla began accepting Bitcoin as a form of payment, while Visa and PayPal made crypto integrations, opening the floodgates for mass adoption.

2024-2025 US Election Bull Run

• Donald Trump re-election
• New pro-crypto policies
• Bitcoin surpassing $100,000

​Following Donald Trump’s re-election as President of the United States, financial markets experienced notable fluctuations. The U.S. stock markets such as the Dow Jones Industrial Average, S&P 500, and Nasdaq surged to record levels, driven by anticipated tax cuts and pro-business policies. Furthermore, the new Trump administration promised to be more crypto-friendly than the last one, sparking new investor optimism in the sector. Consequently, this led to  Bitcoin reached a new all-time high, surpassing the $100,000 mark.

Key Drivers of Bull Run in Crypto

As we’ve mentioned, there is a variety of factors that can force a bull run in crypto. Let’s look at some of the key drivers that commonly fuel these price surges.

Hype and FOMO (Fear of Missing Out)

Social media platforms, news outlets, and even influential personalities play a huge role in amplifying hype around cryptocurrencies. When positive news and price predictions flood social channels, people who don’t want to miss out on potential gains start to invest. This drives the prices of crypto assets even further.

Big Players

Institutional investments from major financial institutions, hedge funds, and tech companies have had a significant impact on crypto prices. When a high-profile company announces a Bitcoin investment, it sends a strong signal of legitimacy and often triggers increased interest and confidence in the market. As a result, other companies can also start purchasing, adding more fuel to the fire.

Tech Breakthroughs and Innovations

Breakthroughs in blockchain technology can spark interest in the crypto market, particularly when new updates or protocols make certain coins or tokens more attractive. For example, the transition of Ethereum to Ethereum 2.0, which introduced staking and reduced energy consumption, attracted many new investors. This not only renewed interest in the project but also reflected in Ethereum’s market price.

Rule Changes and Economic Shifts

Regulatory changes and economic trends also play an important role. In times of economic instability or inflation, people often turn to crypto as a hedge. On the regulatory front, positive changes, like the acceptance of Bitcoin by certain governments or the introduction of crypto-friendly policies, can serve as catalysts for a bull run.

How Long Does a Crypto Bull Run Last?

Most reach their peak within a year to 18 months, however, their duration can vary widely. This depends on factors like:

• Investor Sentiment: Bull runs driven by strong sentiment and FOMO can end abruptly if sentiments shift.
• Economic Conditions: Favorable economic conditions may support a longer bull run. But sudden shifts, like financial instability or regulatory changes, can bring it to an end.
• Market Maturity: As the crypto market matures, bull runs may become more sustained and less volatile compared to the past.

Historically, the previous two crypto bull runs were quite long. The 2017 crypto bull run began at the end of July 2017 and ended in early January 2018, lasting for roughly 165 days. On the other hand, the 2020-2021 bull run began around the end of July 2020 and concluded in mid-November 2021 (470 days). It remains to be seen whether the next one will be nearly as long.

When is the Next Crypto Bull Run?

Predicting the exact timing of a bull run is borderline impossible, but certain indicators can help gauge whether the market is moving toward one. For example, you might want to watch for Bitcoin halving events, as these have historically preceded bull runs by increasing scarcity. 

Furthermore, major advancements in blockchain technology, increased institutional interest, and favorable regulations are all factors that can trigger a bull market. In addition, crypto bull runs are cyclical events. With bull runs in 2017 and 2021, the next one could be coming in 2025.

Tips for Investing During a Crypto Bull Run

If you’re investing during a crypto bull run, it’s essential to approach with caution. Here are some suggestions to help you invest:

1. Avoid FOMO: The fear of missing out can lead to impulsive decisions. Avoid buying at the peak, and take time to research before investing.
2. Set Clear Goals: Have a clear strategy in place, including your entry and exit points. Knowing when to take profits or cut losses can make a big difference. Don’t be afraid to cash out when you’re in profit.
3. Diversify Your Portfolio: Instead of putting all your funds into one coin, consider diversifying across different assets to spread your risk. On the other hand, avoid investing in too many different assets as they can be hard to track.
4. Stay Informed: Keep up with market news, as external factors can impact the direction of the bull run. Joining reliable news outlets and crypto communities can help you stay informed.
5. Have an Exit Strategy: It’s crucial to have a plan for when to exit the market or take profits, as prices can change rapidly.

Closing Thoughts

A crypto bull run offers incredible potential but comes with significant risks. Investors who understand the dynamics of bull markets can make better decisions and maximize their efficiency. 

While it’s easy to get swept up in the hype, always remember to do your research, diversify your investments, and avoid impulsive actions.

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About the author

Tasho Tashev

Tasho is a passionate enthusiast of all things blockchain, Web3 and cryptocurrency. With a keen interest in the cutting-edge intersection of technology and entertainment, he loves sharing stories that inform and inspire.

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