The current Bitcoin market is at a critical juncture. The latest data shows that BTC price hovers around $88.57K, still below the all-time high of $126.08K, but market sentiment is evenly split between bullish and bearish. To understand the current market dynamics, we need to delve into a key concept: what is a bull market in cryptocurrency, and what drives these dramatic upward cycles?
The Nature of a Bull Market: Cyclical Prosperity of Crypto Assets
In traditional finance, a bull market refers to a period of sustained price increases. However, in cryptocurrencies, a bull run has its unique characteristics: prices not only rise but often do so with exponential growth, community enthusiasm surges, and institutional investments flood in.
Unlike the stock market, the bull market cycle in crypto assets is closely linked to specific on-chain events. Bitcoin's halving events occur once every four years, and this mechanism reduces new coins