What are the characteristics of crypto bull and bear markets?
Supply and Demand
Bull markets are characterized by increasing demand with weak supply whereas bear markets have a low demand with a very high supply.
Trading volumes are a good indication of market cycles. Bull markets frequently correlate with high trading volumes and vice versa in bear markets.
Investor sentiment and psychology correlate closely with the crypto market’s performance.
Wider Economic Outlook
Like any other market, the crypto market is intrinsically linked to the broader economy.
New projects see a rise during the bull market. On the other hand, new project launches are rare during a bear market.
Like investor sentiment, the general outlook from mainstream media through news sources and social media platforms indicates stages of a market cycle.
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