What Does it Entail to be Crypto Bullish or Bearish?
Bullish and bearish viewpoints on the crypto market can rely on the viewer.
Cryptocurrency Professional – Mark
When talking about stocks, conventional and crypto, "bullish" and "bearish" frequently come up in news and conversations, but they mostly rely on financial awareness and practice. What do the two words actually mean?
Bullish and bearish refer to the mood of the economy, seen collectively or articulated by an investor. If anyone is bullish, it means they expect the commodity or asset class to increase in price. In the other hand, bearish applies to pessimistic views of values. Someone holding a bullish lean is often referred to as a "bull" whether a business sector or faction is bullish. As a result, "bears" predict declining asset prices.
Why use bulls and bears as the species of choice for these definitions? Perhaps the answers lie in the way the two creatures strike their prey. Bulls strike upward, pushing their horns towards their target. Bears, on the other hand, start high and strike down with their weight.
A Desire for Bearishness?
Bullish and bearish desires are dependent on a variety of variables. Traders can be less concerned with whether a stock or commodity is bullish or bearish, so long as they can sell in both directions allowing them to go short or long. Traders also switch in and out of positions more often than buyers, using narrower time horizons to play.
If a trader is bearish about buying Bitcoin—expecting an inevitable fall in prices—they may enter a short trade on BTC and, thus, reasonably want its price to drop, since they will benefit from the fall in the commodity.
They can also consider assets bearishly on a longer-term basis following unfavourable news, like new government regulatory action. One could keep a bullish view for a time based on a future case, such as the start of Bitcoin futures trading on the Chicago Mercantile Exchange in 2017.
People can also have an overall bearish or bullish view of the commodity as a whole. Michael Saylor, CEO of MicroStrategy, sees Bitcoin as a new medium to store money. Gold champion Peter Schiff, on the other side, sees Bitcoin as a bubble.
As a result, several aspects play into various sections of bullishness and bearishness. Timeframes, experiences, perceptions, and activities will all have an effect on a person's view on an asset or asset class. At the end of the day, each person must come to his or her own decision on what they think.
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