What’s a crypto bull market? Understanding drivers and dynamics
Dec 10, 2025・7 min read
A bull market in crypto is an exciting moment for many traders. High crypto prices soar higher with plenty of confidence, and it may seem like the wins will never stop. As those prices rise, new and established traders may want to capitalize on the opportunity for growth. Understanding what drives these market phases makes it easier to manage risk, track results, and stay prepared when conditions shift.
In this guide, we’ll explain what a bull market looks like, what triggers it, and how to make the most of its opportunities.
What’s a bull market in crypto?
A crypto bull market, or crypto bull run, is a period when digital asset prices rise significantly and market confidence remains strong. It’s similar to a traditional bull market, but the crypto market is much more intense than stocks. Crypto markets react faster, with stronger swings from new technology, capital inflows, and even social media shoutouts.
A bullish market relies on two factors: sustained price growth and sustained optimism in the market.
Sustained price growth
A pattern of rising prices that continues long enough for the market to form a trend is referred to as sustained price growth in a bull market.
In crypto, sustained growth usually means prices climb for several months. Each price jump is supported by strong trading activity and steady demand. During these periods, major assets often set new highs and recover faster from dips.
The 2020 to 2021 Bitcoin (BTC) bull cycle is a good example of sustained price growth. BTC opened in 2020 at around $8,000 USD, passed $20,000 in December, and continued climbing to reach over $64,000 throughout the first half of 2021. Traders’ interest in BTC kept upward pressure on prices and created a sustained growth pattern of higher highs and higher lows over a year and a half.
Sustained optimism
Confidence in a bull market doesn’t fade after a week or two. When investors believe the market has room to grow, they tend to stay active and explore new opportunities with non-Bitcoin crypto options, also known as altcoins.
An example of optimism fueling market growth is Ethereum’s 2020 decentralized finance (DeFi) expansion. Bitcoin had developed the blockchain, but Ethereum added another layer so more users could easily adopt and create with DeFi. The number of users interacting with DeFi protocols rose throughout 2020, and the total value locked (TVL) in these protocols grew from $700 million in January to more than $15 billion by December – a 21-fold increase.
This steady flow of activity from investors and developers kept sentiment high for months. It also encouraged more people to use DeFi, trade on decentralized exchanges (DEXs), and stake their assets for rewards.
What triggers bull markets?
Crypto bull markets often start when a few shifts happen at the same time. Some come from inside the industry, such as a wave of increased DeFi activity or a major blockchain upgrade. Others come from changes in the wider economy, such as federal interest rate adjustments in the United States or growing investor confidence.
These patterns have shown up in past cycles, but two bull markets never unfold in the exact same way. The following triggers come from earlier bull markets, and they shouldn’t be viewed as financial advice.
Bitcoin halving supply shock
Every four years, the amount of new BTC created in each block is automatically reduced by half. This protocol slows down the supply of new coins to create scarcity. If the demand stays the same or grows after a halving, prices have historically pushed BTC into a bull market. The most recent halving took place in April 2024, and we can expect the next one in 2028.
Liquidity expansion
Bull markets often form when more money is flowing through the global financial system. This can happen when central banks lower interest rates or take steps that increase the amount of available capital. When people have more money to spend, whether that’s through cheaper borrowing or growing liquidity, they’re more likely to invest.
Institutional flows
Large investors like institutions can shift the market quickly because they move huge amounts of capital. For example, many big-name institutions like Tesla invested in crypto treasury options during the BTC bull run from 2020 to 2021. This public crypto acceptance and financial support can trigger a bull market, as it creates a sense of safety around the investment and introduces the concept to new audiences.
Retail euphoria
Bull markets often accelerate when non-professional investors or the “retail” public join trading in large numbers. The fear of missing out (FOMO) and enthusiasm means more people make, trade, and sell coins on exchanges. When retail participation rises, demand grows quickly and pushes the trend forward.
Signs of a bull market
To strengthen your ability to catch a bull market on its way up, watch for the following signs:
- Higher highs and lower lows: When major assets bounce back from dips and move above their previous peaks on crypto charts, it suggests that buyers are consistently supporting the upward trend.
- Increase in trading volume: Rising volume in trading confirms that the price trend is supported by real participation.
- Growing social attention: Social feeds on X, Reddit, and YouTube are usually filled with price predictions and market discussions, and this activity increases as a bull market forms. This attention brings new people into cryptocurrency trading, boosting enthusiasm and engagement.
- Rising on-chain activity: The number of active wallets tends to grow during a bull market, and decentralized exchanges record higher trading volumes. More transactions and blockchain use across DeFi protocols show that people have moved from researching to participating in the market.
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Bull market vs. bear market: Key differences
Bull and bear markets create different financial conditions for crypto traders and holders. In a bull market, the money flows in, confidence rises, and new projects quickly gain traction. During a bear market, activity slows and liquidity thins out, so investors become more cautious.
Here are a few major differences between bull and bear markets.
Liquidity impact
Bull markets pull in fresh capital to execute more trades and drum up stronger price support. Bear markets see capital flow out of risk assets, leading to thinner order books and weaker trader support levels.
Sentiment
Confident atmospheres abound in bull markets, so investors are more willing to buy and hold. Bear markets create caution and selling pressure, which slows participation and reduces demand.
Volatility shape
Bull markets often show upward volatility. Price drops tend to recover and continue climbing higher. Conversely, bear markets often show downward volatility. Small rallies fade and sellers take control.
Risk appetite
Traders’ appetite for risk increases in bull markets. They often try fast, calculated strategies like scalping because a bull market’s strong momentum can create shorter-lived price movements. Bear markets reduce risk appetite. Traders are more likely to go for stablecoins or safer strategies like HODLing.
Meme and altcoin expansion
Bull markets help smaller tokens grow because traders want to participate in the investment hype, but often lack the funds for large-cap assets like BTC. That room for growth shrinks in bear markets. During a bear market, traders’ attention returns to established coins with stronger liquidity.
How long do bull markets last?
There is no fixed length for a crypto bull market. Traditional finance markets often work in long-term cycles, but crypto markets are less predictable because they react explosively to new technology and global events. Historical patterns offer helpful context and might help explain why a cycle could strengthen or continue, but they don’t predict when a crypto bull run is going to end.
Past crypto bull market cycles’ length vary significantly. The BTC 2013 bull run lasted several months, and the 2017 cycle stretched close to a year. The 2020 to 2021 expansion unfolded even longer, for about a year and a half, as institutional participants joined in.
Some traders look at macro conditions to understand how long momentum might last. Periods with loose monetary policies or growing global liquidity have often supported longer market expansions. Others look at BTC halving windows and private organizational investments.
4 strategies commonly used in bull markets
Bull markets create opportunities to earn and move quickly. Traders and long-term holders often rely on these four approaches to participate in the trend while managing risks.
Dollar-cost averaging (DCA)
DCA means buying crypto at regular intervals with a fixed amount of money (similar to moving a set percentage of your paycheck into your 401k every pay period). This approach can smooth out volatility and keep you focused on long-term exposure rather than reacting to daily price moves.
HODLing
Many investors choose to hold through most of a bull market. Instead of constantly buying (and possibly selling) during temporary dips, you can HODL your coins and reap steady participation benefits.
Taking profit into strength
Some traders sell their assets even though the price is still climbing. This approach might bring smaller gains, but it can help you avoid overexposure late in a cycle, when volatility increases and reversals happen quickly.
Managing exit liquidity risk
Smaller tokens are hard to sell if few people are trading them. They may rise fast during a bull market, but once the activity slows, you may not find enough buyers to exit. Many traders watch trading volume and avoid oversized positions to lower exit liquidity risk.
Simplify your bull market recordkeeping with CoinTracker
Bull markets create more opportunities to buy, sell, and trade your crypto, which means more transactions to track. Since many crypto transfers are taxable events, it’s important to know details like what you traded, when, and how much when it’s time to report your crypto taxes.
Managing your crypto assets shouldn’t be complicated. CoinTracker lets you track your entire portfolio across multiple exchanges and wallets, all in one place. Join the three million users who rely on CoinTracker for a seamless crypto experience – start free today.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
How does a crypto bull run work?
A crypto bull run creates a cycle where rising prices attract more buyers. That new demand pushes the trend even higher for periods of sustained growth and optimism that fuel the run.
Will crypto be bullish again?
Crypto has already been through several bullish cycles, but future trends depend on many factors. These include market conditions, global economies, and cryptocurrency regulations and acceptance.
What’s the next big crypto boom?
No one can predict the next trend in crypto. New activity often forms around emerging technologies like Layer 2 scaling and DeFi projects.
How long do crypto bull runs last?
Each cycle develops under different conditions, so their longevity varies. Past bull runs have ranged from several months to more than a year.