The Market and it Phases [The Concluding Part]

Hello friends, good to have you back here once again...it's been a while and I've so missed being here.
Where did we actually left off? Well if you've been following, you would remember. We were actually talking about the market and it phases.

We discussed the Bull market coupled with it features, advantages, we also did the same for the bear market. I decided to wrap up that discussion by making this concluding post today which will focus on comparison...more like a compare and contrast on both the bull and bear market.
Let get into it without taking much of our time...

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Comparing the Bull with the bear market.

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My comparison will be based on the important points I will be highlighting shortly. This will help us get a clear picture of both phases of the market in a very summarized view.

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• Investors Outlook.

This talk about the disposition of investors during the period. In a bull market, investors are optimistic and confident about their investment. Since the market seems to be bullish and highly prospective, more investors troop into the market which makes the market even more bullish and profitable.

While in the bear market, investors are pessimistic and lack confidence, you won't even be wrong to say there is absence of confidence on the path of investors in the bear market because they are unsure about the outcome of their holding or investment. The reaction of most investors is to exit the market to avoid experiencing loss.

^freepik

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• Supply and demand

We all know that the market is controlled by two powerful force and this is not limited to the crypto market. Any and everywhere referred to as market is moved by these two factors.

In a bull market, there is a high level of demand and less supply, in that a lot of investors are holding on to their cryptos or assets in the hope that the price appreciates further. When many investors refuse to sell and rather decide to hold, it further pushes up price since the asset is limited in circulation, this automatically create pressing demand on what is available for sale.

In a bear market there is a high level of supply but less demand. The resultant effect is that price of assets fall as there are too many who would love to sell the same asset and when there are no equivalent demand for the saturated asset, the price of such asset fall downwards.

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• Liquidity

Another factored to consider is liquidity, the bull market which is bouyant is characterized with high liquidity level as many are ready to transact in the bull market because of the confidence and optimism that comes with this market phase. While in a bear Market, there is less liquidity as the market is already in a depressed state. There is less and less activities of buying and selling in that market phase.

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• Economic Impact

Interestingly, the bull and bear market have impacts on the economy. When the market is bullish, Investors feel really good... they are bouyant enough to plough back into the market by means of investment.
The profit made would allow for spending thereby making money circulate in the economy and making it bouyant.

^freepik

While in the bear market, investors withdraws and limit investment, spending reduces and this leads to lack of money in circulation making the economy weak and less desirable and that's because less profit are made by investors in this market phase when compared to the bull market.

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• Projects Emergence

I didn't really know how to tag this particular point but i had to use the above point to express my thought, but trust me, you will get the point.
I mean to say that in the bull market, New companies and crypto project tend to come on board, they actually take advantage of the bull season which seem profitable for investors.

Emerging or announcing a project in a depressed state of the market already spells dooms for the project developers or company. This is the reason why we see the emergence of so many new project in the bull season trying to lure investors to buy into their ideas.

The reverse is the case in a bear market as less and less project are introduced, the reason is not far fetch, most project owners already perceive that the timing is wrong and that most investors are already sceptical about the market.

These are just few out of the many point you can research online when comparing market phases.

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Conclusion

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There you go friends.I would love to wrap it up at this point. I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.

Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!

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^{Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.}

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Regards
@lhorgic♥️

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