Different investors have different opinions about the crypto market, but they all agree that the industry is defined by increased volatility. It’s a space where profit can be made, or money can be lost overnight, especially during a bull run. Bull markets are described as golden opportunities for investors looking to boost their income because if they use the proper strategies they can turn the market’s volatility to their advantage. 

The terms bulls are charging, and bears are prowling are widely used in the stock market, but since cryptocurrencies have started gaining ground in financial markets, they have also been used in association with digital assets. Cryptocurrencies also rally at times, and naturally, investors have adopted the terms to describe the periods when they suffer price fluctuations. 

And as everyone talks about how the bull market is at its beginning, and people have started looking for ways to buy Bitcoin, it’s worth discussing the actions investors should take.

Now, let’s figure out what a bull run is

Let’s talk about hull runs in general, it’s irrelevant if cryptocurrencies or stocks are the subject of discussion because these periods function the same. Bull markets are characterized by times when the assets are sold at high prices. For cryptocurrencies, bull markets usually last three to four years, and everyone can identify the uptrend in value. Bear markets, on the other hand, signify times when the assets’ prices fall. 

Let’s analyze the previous bull and bear markets. We can easily notice that Bitcoin is the harbinger of these periods because its price is the first to suffer major changes, and it impacts the values of all the other digital assets. Therefore, as the BTC prices have been surging since the start of the year, crypto experts can only predict that the market will soon boom in terms of value. 

Bitcoin never rallies alone, even if it has a larger market capitalization than altcoins. Ethereum, the second digital crypto by market cap, follows its direction, and all the other alternative currencies join the trend. At the moment, the entire crypto world is experiencing positive growth, which makes investors feel greedy. However, seasoned traders are cautious and wait to see if the market will remain in the bull sprint or slump. 

Why do finance experts use the term bull?

The term bull is ideal for describing this period in the crypto industry because of the way bulls attack—if you have never seen one, it thrusts its horns upward, resembling the same movement of prices during this time. Investors tend to be more optimistic during bull markets because the period usually provides them with more profit prospects, which will cause increasing activity in the sector. In these conditions, the assets’ prices go up. 

Should you buy Bitcoin during this time?

Bitcoin hit an all-time high (near 81.000) in November 2024, after its fourth halving, which shows that the inflation will most likely trigger an increased volatility for cryptocurrencies, which could turn lucrative for some investors, according to their end goals. Here are the main reasons why buying Bitcoin at this time might be a good idea. 

Bitcoin’s price spiked after the previous halvings

As mentioned earlier, Bitcoin went through the fourth halving event, so we can have a look at how the market reacted to the previous ones to try to predict what will happen next. Halvings are meant to reduce the rate at which Bitcoin is created, and considering that the supply gets lower with every event, the demand increases, and therefore, Bitcoin’s price spikes. However, Bitcoin sees the effect after a couple of months, but the market needs a couple of months to adapt to the new conditions. The value is expected to wobble for 3 to 6 months and then surge 12 to 18 months after the halving. However, it’s challenging to predict the exact time when Bitcoin will head on an upward trajectory, but the general consensus is that it will definitely do so in around one year after the halving. 

Institutional investors are interested in Bitcoin

The introduction of spot Bitcoin ETFs at the beginning of the year was good news for Bitcoin because they enable institutional investors to access the cryptocurrency more straightforwardly. The event is expected to attract a huge capital influx into the crypto sector because more investors will be willing to add Bitcoin to their portfolios due to its reliability. Besides the institutional investors, ordinary traders can also access Bitcoin ETFs like Fidelity Wise Origin Bitcoin Fund and iShares Bitcoin Trust and add them to retirement saving accounts. 

As expected, the increased interest of institutional investors drives a spike in prices because the demand for Bitcoin is higher than before. 

Bitcoin is a scarce asset

When Satoshi Nakamoto, the anonymous creator of Bitcoin, introduced it for the first time to the public, announced that there would be only 21 million Bitcoins. Therefore, Bitcoin is one of the few cryptocurrencies with a limited supply which serves as one of the factors that impact its price. Crypto experts have concluded that the supply of new coins is increasing at a slower rate than the mining of gold, with each new halving, so it’s a scarcer asset. The demand for digital gold has increased over the last few years, while the supply remained the same, so this could only turn beneficial for the asset in the long run. Bitcoin is a store of value and one of the most valuable available, so it’s worthy of being part of any investment portfolio. 

Is this the ideal moment to buy Bitcoin?

It’s not ideal considering its high price, but because you missed the opportunity to purchase it in the bear market, now is also a good time to do it before its post-halving price goes up. What you should keep in mind is that each halving event will only build its value up, and its scarcity will remain the same. If you don’t have Bitcoin in your portfolio, consider adding some, and you’ll most likely get a return on investment in the long run.