Bull and Bear Markets in Crypto Explained  Blum Academy #blum #crypto #airdrop #bitcoin - video Dailymotion

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Bull and Bear Markets in Crypto Explained  Blum Academy #blum #crypto #airdrop #bitcoin

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00:00Hi, everyone.

00:03When you tune into financial news, you might hear analysts talking about being bullish

00:07or bearish on a certain asset.

00:09They might even mention that a market is in a bull market or a bear market.

00:13But what exactly does that mean?

00:15Let's break it down.

00:18A bull market is when stock prices are on the rise.

00:21Like think of it as a time when the economy is booming, production is strong, jobs are

00:25plentiful and inflation is low.

00:28During this period, investors are generally optimistic, expecting prices to keep climbing.

00:33People tend to invest more, hoping to ride the wave of rising prices.

00:37On the flip side, a bear market is the opposite.

00:40Here, stock prices are falling, the economy slows down, and unemployment and inflation

00:45start to creep up.

00:46In this scenario, investors are usually pessimistic, fearing that prices will continue to drop,

00:51which often leads them to sell off their assets to avoid losses.

00:54In both bull and bear markets, investors tend to act based on the assumption that the

01:00trend will continue.

01:01If they believe prices will rise, they are considered bullish.

01:05If they think prices will fall, they are bearish.

01:07These terms describe their market outlook and guide their investment strategies.

01:13The key driver behind both bull and bear markets is the basic economic principle of supply

01:18and demand.

01:19When the demand for securities is higher than the supply, prices rise, leading to a bull

01:23market.

01:24Conversely, when supply exceeds demand, prices fall, resulting in a bear market.

01:29Three important questions often arise.

01:31When are we in a bull or bear market?

01:33It's not always clear-cut, but according to the Dow theory, a market is considered bullish

01:37if prices have risen by at least 20%, conversely, if prices drop by 20% or more, we're in a

01:43bear market.

01:44Second, how long do these markets last?

01:47This varies, but broadly speaking, markets that last longer than five years are called

01:52secular markets, while those that last for shorter periods are known as cyclical markets.

01:57Third, why are they called bull and bear markets?

02:00The origins of these terms are debated, but one theory is that they relate to how the

02:04animals attack.

02:06Bulls thrust their horns upward, symbolizing rising prices, while bears swipe their paws

02:11downward, indicating falling prices.

02:15Investing during a bull market might seem straightforward—buy early, watch prices

02:19rise and then sell at the peak—but timing the market is incredibly tricky.

02:23Nobody can predict exactly when the market will hit its peak.

02:27The strategy sounds simple, but it's much harder to execute perfectly.

02:31In a bear market, there are different strategies you can use.

02:34Some investors move their money into less volatile assets like bonds, which offer fixed

02:38returns.

02:39Others wait for prices to stabilize before buying again.

02:42Still, some try to profit by taking advantage of falling prices, though this also requires

02:47precise timing.

02:48Whether we're in a bull or bear market, there's no guaranteed way always to succeed.

02:54The best thing you can do is stay informed, keep learning and make educated decisions.

02:59So what's your strategy?

03:00Do you see yourself as bullish or bearish?

03:03Let us know in the comments and don't forget to hit that subscribe button so you never

03:06miss an update.

03:07See you in the next video.

Bull and Bear Markets in Crypto Explained Blum Academy #blum #crypto #airdrop #bitcoin

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