Bitcoin rises over $26,000: Is crypto bull market approaching? - Kalkine Media

A bull market is when prices in a financial market surge or are likely to rise. The word "bull market" can be used for anything which is traded, such as currencies, bonds, real estate, and commodities, though it is majorly used for the stock market.

The word "bull market" is usually reserved for prolonged times when a significant percentage of security prices are rising as prices of securities increase and decrease regularly during trading. Bull markets generally continue for many months or even years.

Leading cryptocurrency Bitcoin has taken investors by surprise as it increased around 18% in the latter half of March 2023. This has left many wondering: is crypto heading into a bull market?

Indicators of a Bull Market

Bull markets are defined by investor confidence and the belief that good performance will likely last long, whether of stock or cryptocurrency value. Consistently predicting when market patterns might shift is challenging. One challenge is that psychological factors and speculative activity can significantly impact the markets and how investors operate within them.

No single accepted measure can be used to identify a rising market. But the most typical meaning of a bull market is when stock values rise by minimum 20% from recent fall.

Bull markets are challenging to forecast, so experts typically only notice this occurrence after it has already occurred. Recent history's most significant bull market was recorded between 2003 and 2007. The S&P 500 saw a remarkable increase after a prior drop; as the 2008 financial crisis took hold, notable drops continued after the bull market run.

What creates a bull market in crypto?

Bull markets typically occur when the economy is growing or already robust. They frequently occur with rising corporate earnings, a robust gross domestic product (GDP), and decreased unemployment. In a rising market, investor trust will also generally increase. The general mood of the market as well as the desire for equities will be positive. Also, an overall rise is seen in IPO activity during bull markets.

Generally, market sentiment, which is described as the attitude or belief of investors in the financial market, plays a massive role in creating fluctuations in the market. For example, investors might invest more in Bitcoin because they believe the profitability will be high. In that case, it creates a demand for a particular market asset, resulting in a positive swing — a pull towards a bull market. However, if investors lose faith in the market and simultaneously withdraw their investments, this negatively impacts the market and can cause a crypto winter or bear market.

Is a bull market coming in 2023?

On March 14, 2023, Bitcoin (BTC) hit a nine-month high, with four-day gains surpassing 30%.

On its fourth day of advances, Bitcoin increased 9.6% to $26,533, its highest level since June 2022. The surge took place when the newest CPI statistics was released by the United States Department of Labor for February 2023.

BTC has been heavily marketed as an inflation safeguard, as analysed by market experts on this Bitcode Method review. The cost of Bitcoin surpassed $26,000 as the CPI statistics mirrored the estimates.

After the Bureau of Labor Statistics statement, over $85 million worth of transactions were liquidated, according to Coinglass.

Since hitting a 41-year peak of 9.1% in June 2022, U.S. inflation has slowed, but it is still higher than the Federal Reserve's goal of 2%. The recent inflation figure might have spurred the Fed to keep increasing interest rates at their meeting next week if the U.S. banking industry still needs to be completely upended.

The report's effect is less noticeable, as increased interest rates may have led to some of Silicon Valley Bank's issues. On 12 March2023, U.S. Treasury Secretary Janet Yellen indicated that issues at Silicon Valley Bank were caused by "a higher interest rate environment" rather than problems in the tech industry.

Many crypto enthusiasts voiced views on 14 March 2023, which took to Twitter. In a sequence of tweets about the CPI update, Anthony Pompliano, the co-founder and partner of Morgan Creek Digital, highlighted how Bitcoin's price increased in reaction to the most recent inflation statistics.

A bear market, or crypto winter, was heavily speculated in 2022 as the share values of many big-scale businesses in the world fell. The most significant issue on investors' minds is when the next bull market will arrive and jolt stocks out of their current rut. Despite the market signs, there has yet to be a solution.

Bull markets do, in fact, always come after negative markets, according to historical trends. Additionally, a declining market typically lasts one year on average. All of this suggests that it would be wise to start planning for profitable times ahead now.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.