What Does Bullish Mean In Crypto?
Bullish Definition
The terms bullish and bearish have become some of the most significant when describing how one feels about a given financial market. A bull market (whether it be crypto, stock, real estate, or other) shows sustained or substantial growth. Conversely, bear markets experience sustained declines. A crypto investor is bullish when he or she feels confident a cryptocurrency and or non-fungible token (NFT) will rise in price.
When a crypto investor, creator, or enthusiast is feeling bullish, they exude confidence. They are more inclined to feel bullish when the market is on the rise and gains are being incurred. It is important to understand that the crypto market moves in a unique fashion and tends to be quite volatile. As a rule of thumb, when the larger and better-known fungible tokens move up in a bull market, the smaller tokens will follow. A bull market in crypto almost always includes the rise of Bitcoin, Ethereum, Binance, and Solana as these currencies have the highest market cap. When these four currencies are increasing in value, investors are more bullish and tend to invest in higher quantities hoping to obtain significant returns.
What Is A ‘Bull Run’
A bull run in the crypto market is a period in which investors are buying at higher rates compared to selling. It is a time in which a lot of investors are purchasing cryptocurrencies and/or NFTs. A bull run includes an increase in prices as demand for crypto rises. This ‘run’ in price is caused by a high level of confidence in the market.
Bullish On NFTs
A similar phenomenon occurs in the NFT market. Non-fungible tokens, better known as NFTs, are digital assets that can be transferred through the blockchain. NFTs include collectibles, games, art, passes, and so much more. Much like fungible tokens, (Ether, Bitcoin, etc.) NFTs can gain and lose value over time. Like any asset, supply and demand set the value of NFTs. Basic economic principles dictate that the greater demand and less supply, the higher in price of the asset will be.
The bullish feeling that comes from a growing market holds the same significance in the NFT space. A collector, trader, and/or creator will feel bullish on an NFT project for multiple reasons. The demand for NFTs comes from utility, community, and development (dev) teams. Dev teams can generate higher demand for their projects through marketing, community building, and utility generation. The more demand created, the more bullish individual nodes feel about a given project. Subsequently, this bullish feeling will increase the prices of the assets and lower the market supply. Many in the NFT space will publicize this bullish feeling on social media thus further increasing the “hype” which will lead to more sales and yet again, a higher price.
Final Thoughts
The cryptocurrency market has brought on a plethora of new jargon. This jargon is used on a regular basis among those involved and is not going anywhere anytime soon. The most important step in learning about a new market is understanding the terminology. Seeking out new cryptos or NFTs that many find bullish is a key skill when it comes to investing productively. The typical investor will attempt to buy in bear markets, when prices are low, and sell in bull markets when prices are high. This strategy is easier said than done and there are always risks when trying to time a market. A good rule of thumb is to not feel too bullish because that feeling is almost always complimented with a bearish feeling at a different point in time. Happy investing!
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