What Are Bull and Bear Markets?

April 22, 2019, by Maayan
If you’ve been paying attention to media coverage of the crypto market, you may have heard the terms “bull” and “bear.” Here’s what they mean, and how they should influence your buying decisions.
bull and bear market

As a Bitcoin investor, you’ve probably been paying attention to market sentiment. This is the way in which cryptocurrency market prices are being described by experts and by the media. Two terms that you may have heard quite often are “bull” and “bear.” These terms simply indicate whether the market is doing well or doing poorly.

What is Bear market

Bear markets occur when crypto prices are on the decline. Since the price of Bitcoin fell over the course of 2018, news sources frequently referred to that period as an “extended bear market.” Additionally, individual investors will sometimes describe themselves as “bearish” if they believe a cryptocurrency’s price will fall.

What is Bull market

Meanwhile, bull markets occur when crypto prices are on the rise. Due to the fact that Bitcoin’s price has gone up over the past few months, 2019 has been described as “the beginning of a bull market.” As above, investors may describe themselves as “bullish” if they believe a certain cryptocurrency will gain value.

These terms only really matter if you are making short-term investments―that is, “day trading” or “margin trading.” This involves making complex daily decisions about whether to buy and sell cryptocurrency. This is difficult and risky. It also requires a substantial investment: if you don’t invest much, fees will quickly eat up your profits.

If you are new to investing, it is much easier and safer to buy Bitcoin as a long-term investment. This approach requires patience, but is reliable: it simply involves waiting for Bitcoin’s price to increase over time. Fortunately, Bitcoin will eventually gain value regardless of whether you invest during a bull market or a bear market.

How to find your bearing

Still, you might want to watch market prices as they change. Jubiter provides detailed price notifications as part of its exchange services. This will help you decide whether it is profitable to sell your Bitcoin or not. This is a simple way to tell whether your Bitcoin has accumulated value―there is no need to worry about complex market terminology.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.