Bull Cycle

Definition ∞ A bull cycle denotes a sustained period within financial markets where asset prices experience general upward movement. In the context of digital assets, it signifies a market phase characterized by increasing cryptocurrency values and widespread investor optimism. This period often sees rising trading volumes and positive market sentiment, driving further price appreciation. It reflects strong buying pressure dominating selling activity.
Context ∞ Cryptocurrency markets frequently experience distinct bull and bear cycles, influencing investor behavior and market strategy. Understanding a bull cycle provides essential context for interpreting market news, as announcements during these times often correlate with rapid asset value increases. Traders and analysts closely monitor indicators suggesting the start or continuation of such a cycle, as it presents opportunities for capital appreciation, alongside the inherent risks of market reversals.