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A bullish or bearish view of the cryptocurrency market can depend on who is voicing their opinion. Once in the markets, whether conventional or cryptocurrency, the terms "bullish" and "bearish" are equally used in both texts and conversations, as their earnings depend on financial and empirical factors. The terms bullish and bearish refer to market sentiment viewed collectively or expressed by an individual. If an individual is "bullish", it means that he or she expects the price of an asset or asset class to rise. Conversely, a "bearish" sentiment means negative expectations about prices. A person with bullish inclinations will be labelled "bullish" or "optimistic" if the market group or sector is bullish. Thus, a "bearish" person expects asset prices to fall.

Why exactly are bulls and bears used as animals for this terminology? Perhaps the answer lies in the way both animals attack their prey. Bulls attack from the bottom up, driving their horns into the target. Bears, on the other hand, start from the top and attack downwards using their weight and arms. However, this explanation of the roots of the terminology is only one possibility, Investopedia reported. The actual origin of these expressions is unclear. It may also be related to bear-hide trades in the past. The Oxford Learner's Dictionary describes bullish as "to feel confident and positive about the future" or "to cause or be associated with a rise in stock prices." Bearish means: "to show or expect stock prices to fall".


Bullish and bearish desires depend on several factors. In general, traders care little about whether a market or asset is bullish or bearish as long as they can trade in both directions (called long and short positions). Traders tend to enter and exit their positions more frequently than investors and use shorter time horizons for their strategies. Rather than despairing that the bulls will outperform the bears or vice versa, traders may be more concerned with whether they are correctly assessing bullish or bearish sentiment, benefiting from trading as long as they correctly determine which direction a given asset is heading, depending on the trading strategies used. However, some traders' strategies, talents or proclivities may favour some market conditions over others.

Investors, on the other hand, tend to buy positions and hold them longer, benefiting from rising prices, so they logically favour bull markets. An investor can take a long short position or sell an asset if they have a bearish view on it, although the maximum they can do (in almost all cases) is a 100% profit if they take a short position at an absolute high and take the asset to zero. On the other hand, assets can rise in value almost indefinitely, offering possible profits of more than 100%.


The head of Bitpanda Spain says that bitcoin is a mature asset in many portfolios. In terms of cryptocurrencies specifically, why would an investor or trader discount the price of bitcoin (BTC) or any other alternative currency, even if they are generally bullish on the cryptocurrency sector? One reason could be their stance. If a trader holds a bearish stance on BTC, expecting the price to fall soon, they may take a trade in BTC and therefore logically want its price to fall as they will benefit from the asset's decline. Traders may even be short-term bears and long-term bulls, or vice versa. For example, they may expect the price of bitcoin to fall for a few days or weeks, but eventually rise and return to an uptrend that will last for a few months.

Investors or traders may also take short-term bearish and long-term bullish views, wanting to lower prices in the short term in order to buy certain assets at relatively lower prices. On the other hand, a market participant may hold short-term bullish views and long-term bearish views. They may believe that prices will rise due to appreciation or other factors, so they may buy or go long in the short term, while in the latter case they hope to eventually sell their positions because they believe the market is a bubble.


It is important to note that in the markets, the definition of short term and long term can be subjective. Is gold dead? Long live bitcoin? A look at what could cause bullish or bearish sentiment. A bullish or bearish view can be based on a wide range of components such as charts, news and general knowledge. A market participant may believe that the price of bitcoin or altcoin is bearish during a particular period based on certain conditions or chart patterns. Assets may also be viewed as bearish over the long term following negative announcements, such as specific government regulatory actions. A bullish view may persist for a period of time based on an upcoming event, as was the case with the launch of bitcoin futures trading on the Chicago Mercantile Exchange in 2017.

People can also have a general "bearish" or "bullish" view of an asset in general. MicroStrategy CEO Michael Saylor sees bitcoin as a new option for storing value. Gold supporter Peter Schiff, on the other hand, sees bitcoin as a bubble. Thus, there are many factors at play in the differing views of bulls and bears. Time frames, attitudes, opinions and events can influence a person's view of an asset, or asset class.