Bear or Bull?

Bear or Bull? June 15 2018

In my research, I’ve come across a few articles that have questioned if Bitcoin and other crypto currencies are in either a bear or bull market and I wondered what the heck that meant; here is what I have found. Simply put, a bear market is when the market is doing poorly and a bull market is when it is doing well. Sure.

Bear markets created the saying “it’s not how much you made, its how much you keep”, yikes. I’m sure this is a sentiment heard from even the most loyal cryptocurrency supporters in the last year. In the stock market bear markets happen around every three years and last for around 367 days, if that holds water with cryptocurrency as most economist suggest, crypto will be coming out of what has been dubbed as “crypto winter” it’s first real bear market, soon. Thank goodness. Some crucial points of a bear market are that they hit new lows and the highs are lower than before. After the all time high for Bitcoin and alt-coins in December of 2017, cryptocurrency fell over 70% between December 2017 and February 2018, hitting a low that hadn’t been seen for years. Now the price has recovered a bit and seems to be on an upward trend but its highs are far lower that last year’s highs, still categorizing crypto as in a bear market. The good news is that economist say that this is how long term markets act and the price should recover into a bull market soon.

Just yesterday Coindesk, my favorite site for crypto news, had an article titled “Up 45%: Is Bitcoin Preparing For A Bull Market”. This would mean a sustained rises in the market, with higher peaks than previously. One non-numerical characteristic of a bull market is demand for the stock, or commodity or currency, led by a rise in investor confidence. After the news of the last few months, Goldman and Sachs trading desk, a crypto Czar in the SEC, government nominees promoting crypto, there is more faith in the sustainability of cryptocurrency than ever, leading to a better market, leading to more confidence in the market.

Just for fun, I came was introduced to the term “Dead Cat Bounce” by a finance major during my research and after I made a face at him so he knew how grossed out I was by the terminology he explained that it was when the market looks like it is coming out of a bear market into a bull market but then drops again. Ew.

Here are a few articles about Bull and Bear markets: