Bull and Bear Markets

Bull and Bear Markets: Who’s the Real Boss on the Exchange?

On financial markets, like in a good zoo, there are two main beasts — the bull and the bear. Each of them is responsible for the mood of the investor crowd and for which way the prices are moving.

What is a Bull Market?

A bull market is when asset prices rise, and optimism is off the charts. Everyone’s buying, believing in eternal growth, and making plans to buy a little beach house. The bull symbolizes growth: it lifts the opponent on its horns — just like the market strives upwards.

Signs of a Bull Market:

• Prices are steadily rising;
• Investors are full of enthusiasm (and FOMO — fear of missing out);
• Trading volumes are growing;
• Positive news fuels hype.

What to watch out for: Don’t forget that in a bull market, it’s easy to lose caution. When it feels like “this is just the beginning,” it’s often already the middle of the party.

What is a Bear Market?

A bear market is when prices are falling, and fear becomes the main advisor. Everyone’s selling, expecting worse to come, and mentally counting their stockpiles of canned goods. The bear symbolizes decline: it strikes with its paw from above, and the market heads down.

Signs of a Bear Market:

• Long-term price decline (usually 20% or more);
• Panic and pessimism in the news;
• Decreasing trading volumes;
• Participants try to “save what they can,” and new purchases are rare.

What to watch out for: Bear markets often give rise to the best investment opportunities — but only a very patient and level-headed investor can distinguish them from a falling knife.

A Little Philosophy:

The eternal battle between the bull and the bear is always going on. Sometimes it seems like one has won forever — but the market, like a good feast, never ends with just one song.

And remember:

• A bull market makes you rich… if you don’t forget to exit in time.
• A bear market makes you wiser… if you don’t sell everything at the bottom.

Bonus: Investor’s Guide (How to Act in Bull and Bear Markets)

Bull Market: When Everything Is Rising, But Don’t Forget the Risks!

What to do:

• Stay calm: Even if the market is rising, don’t forget the risks. You don’t always have to sell, but always plan your exit.
• Follow the news: The positive trend may continue, but it’s important to understand that at the peak, there’s always the possibility of correction.
• Diversify: When the market “is hot,” don’t forget to invest in different assets. This is not just crypto but also stocks, bonds, real estate.
• Lock in profits: Sometimes it’s wise to partially lock in profits and move into more stable assets.

What not to do:

• Don’t jump on the last train: If the whole market is booming, don’t chase the hype. Often, at peaks, there’s a “FOMO” hunt (fear of missing out).
• Don’t lose your head: Optimism is good, but remember that stable growth doesn’t last forever.

Bear Market: When Everything Is Falling, But There’s a Chance to Get Smarter!

What to do:

• Evaluate risks: Price drops can be an opportunity to buy assets at low prices. But you need to do this carefully and consciously.
• Hold your money in stablecoins or fiat: If the market has dropped significantly, don’t keep everything in crypto or stocks that may fall even further.
• Be patient: A bear market is time for a strategic approach. Don’t panic and don’t sell everything at the bottom.
• Look for opportunities: In crises, long-term opportunities to buy assets that will recover later often arise.

What not to do:

• Don’t try to catch a falling knife: Selling assets at the bottom is the worst thing you can do in a bear market.
• Don’t fall for false optimism: The market doesn’t always recover instantly. Too quick attempts to “play catch-up” can lead to losses.