The term “bull run” originates from Wall Street, where surging markets, rising investor confidence, and a wave of buying activity signal a sustained period of growth. In the world of cryptocurrency, a crypto bull run describes a similar phenomenon—rapid, widespread price increases across digital assets, often lasting weeks or months. These periods are marked by excitement, media attention, and a surge in new participants entering the market.
Recent years have seen several notable crypto bull runs: the Pandemic Bull Run of 2020, the ETF-driven surge in 2024, and the more recent climb toward Bitcoin’s $100,000 milestone as we enter 2025. While these names aren’t official, they reflect the key catalysts behind each rally. And while Bitcoin often leads the charge, the momentum typically spreads across the broader market—Ethereum, Solana, and even meme coins like Dogecoin often experience even greater percentage gains.
For example, when Bitcoin rose 37% from $70,200 to $96,500 in late 2024, Ethereum surged 47%, and Dogecoin skyrocketed by nearly 160%. This correlation is common because Bitcoin remains the most established and widely watched cryptocurrency. As a result, its price movements are frequently used as a proxy for the overall health and sentiment of the crypto market.
What Triggers a Crypto Bull Run?
At its core, every bull run is driven by one fundamental economic principle: supply and demand.
On the demand side, prices rise when more people want to buy an asset than sell it. The opposite occurs when selling pressure outweighs buying interest. The supply side, however, is far more predictable. Currently, around 19.79 million Bitcoins are in circulation, with only about 450 new BTC entering the market daily through mining. Given the total supply, this daily influx represents less than 0.002% growth—essentially negligible.
Because supply changes so slowly, price fluctuations are almost entirely dictated by shifts in demand. When optimism spreads—whether due to macroeconomic trends, regulatory developments, or technological breakthroughs—more buyers enter the market, pushing prices upward. Over time, this snowball effect fuels a full-blown bull run.
But what exactly creates that optimism? And who drives it?
👉 Discover how market sentiment shapes crypto trends—and how you can stay ahead of the next wave.
The Psychology of Retail Investors
Chances are, you’re a retail investor—someone investing personal funds into crypto, often based on accessible information and personal research. You’re not alone. Millions of individuals like you track price charts, follow crypto news, and engage in online communities to make sense of market movements.
Most retail investors rely on surface-level data: recent price action, social media sentiment, regulatory headlines, or tips from friends. When Bitcoin hits a new all-time high or major companies announce crypto adoption, optimism spreads quickly. This can trigger FOMO (fear of missing out), leading to increased buying—even without deep analysis.
Some retail traders go a step further by using on-chain analytics tools to assess market health. These tools track metrics like the percentage of Bitcoin wallets that are “in profit”—meaning their holdings are worth more than what was paid. A high percentage can signal potential selling pressure, as investors cash in gains. While insightful, such data still requires interpretation and doesn’t guarantee accurate predictions.
Ultimately, retail investors operate with limited resources and information. Yet their collective behavior can have an outsized impact. Because there are so many individual participants, widespread sentiment—whether rational or emotional—can move markets in unpredictable ways.
The Role of Institutional Investors
Institutions—hedge funds, asset managers, pension funds—approach crypto differently. They have access to advanced research, economic models, and risk assessment tools. Even when using only public data, institutions can analyze broader macroeconomic trends: interest rates, inflation, tech sector performance, and global monetary policy.
Their investment decisions are typically risk-first. For example, when government bond yields are attractive, institutions may favor low-risk assets over volatile cryptocurrencies. But when traditional markets appear overvalued or inflation rises, crypto can become a more appealing hedge.
Historically, institutions hesitated to enter crypto due to custody concerns—managing private keys and securing digital assets isn’t part of their traditional playbook. However, that’s changing.
The launch of Bitcoin ETFs in 2024 was a game-changer. These exchange-traded funds allow institutions to gain exposure to Bitcoin through regulated financial products—no need to handle private keys or wallets. As a result, more institutional capital flowed into crypto at a time when Bitcoin was still priced significantly below its 2025 levels.
This shift could lead to a more mature market: less prone to wild swings driven by social media hype and more influenced by fundamental analysis and long-term strategy.
👉 See how institutional adoption is reshaping the future of digital assets.
Key Takeaways: What This Means for the Market
Crypto bull runs are primarily driven by demand-side dynamics, not supply changes. While mining adds new coins gradually, it’s investor psychology—both retail and institutional—that fuels explosive growth.
- Retail investors react quickly to news, trends, and emotions. Their collective actions can create short-term volatility and amplify rallies.
- Institutional investors bring stability. With deeper analysis and regulated access points like ETFs, they contribute to longer-term price appreciation with fewer extreme swings.
As crypto adoption grows and more financial infrastructure becomes available, we may see fewer surprise bull runs and a market that behaves more like traditional asset classes—still dynamic, but grounded in fundamentals rather than hype.
Frequently Asked Questions (FAQ)
Q: What defines a crypto bull run?
A: A crypto bull run is a sustained period of rising prices across major digital assets, typically driven by increased demand, positive sentiment, and growing adoption.
Q: How long do bull runs usually last?
A: They can last from several weeks to over a year. The duration depends on market conditions, external economic factors, and investor behavior.
Q: Is Bitcoin always the first to rise in a bull run?
A: Often yes. Due to its market dominance and liquidity, Bitcoin usually leads rallies. Other cryptocurrencies tend to follow in what’s known as the “altseason.”
Q: Can bull runs be predicted accurately?
A: Not with certainty. While indicators like on-chain data and macroeconomic trends provide clues, human psychology and unexpected events make precise predictions difficult.
Q: Do bull runs always end in crashes?
A: Not necessarily—but rapid price increases are often followed by corrections. These pullbacks are normal and can help stabilize the market before further growth.
Q: How can I prepare for the next bull run?
A: Stay informed, diversify your portfolio, avoid emotional trading, and consider dollar-cost averaging. Access to reliable platforms and tools can also improve your decision-making.