How to prepare for the next bull run?

The term bull run refers to a period when the cryptocurrency market experiences significant and often long-term growth. We have witnessed several such phases in the past. For example, in 2017 and 2021. At that time, Bitcoin gradually surpassed historical highs and attracted enormous attention from investors and the media.

Most other cryptocurrencies grew along with it, with smaller projects, known as altcoins, often showing the greatest momentum, managing to increase their value by hundreds of percent in a short period of time. Conversely, the period after the end of a bull run is often associated with sharp price declines, which shows how cyclical and volatile this market is.

The main trigger for growth periods is usually a combination of several factors.

The regular halving of Bitcoin, i.e., the reduction of the reward for miners approximately once every four years, plays an important role. This mechanism limits the supply of new Bitcoins, which, with growing demand, leads to pressure on price growth.

Other catalysts include the entry of institutional investors, the introduction of new regulations that increase market confidence, and technological innovations that attract the interest of the wider public.

Investors who want to prepare for the next bull run should first and foremost take into account that market timing is very difficult. A sensible strategy is to gradually buy smaller volumes over the long term, known as dollar-cost averaging, which reduces the risk of poor timing. At the same time, it is important to diversify, so in addition to Bitcoin, which has historically been the most stable, other projects with long-term potential, such as Ethereum, can be considered.