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"Where did the terms 'bulls' and 'bears' in crypto come from?"
The terms "
bull" and "bear" are used to describe trends in financial markets, including the cryptocurrency market. The origin of these terms is not entirely certain, but there are several possible explanations:
* Animals' attack patterns: The most widespread theory connects the terms to the way these animals attack. A bull attacks by thrusting its horns upwards, symbolizing rising prices. Conversely, a bear strikes its prey downwards with its claws, representing falling prices.
* Historical trading practices: Another theory refers to the 16th century, when middlemen in the bearskin trade sold skins they did not yet possess. They bet that the future purchase price of these skins from hunters would fall. These middlemen became known as "bears," and this term may have expanded to describe a declining market.
* Historical animal fights: In the past, fights between bulls and bears were popular. These two animals were considered opposites, and their "battle" may have symbolized the confrontation between investors who expect prices to rise (bulls) and those who expect them to fall (bears) in the market.
In the cryptocurrency market, these terms are used in the same way:
* Bull Market: A period during which cryptocurrency prices are continuously rising, and there is optimism in the market. Investors are "bullish" and expect further price increases.
* Bear Market: A period during which cryptocurrency prices are continuously falling, and there is pessimism in the market. Investors are "bearish" and expect further price declines.
Although the exact origin of the terms remains uncertain, the use of "bulls" and "bears" has become established in financial terminology to describe the prevailing market trends.
