These are phrases very often used in the trading community. These words are meant to illustrate the market orientation, whether the market is bullish (heading up) or bearish (heading down). These words are important for understanding the more experienced group of people in the field.
Why are these terms important?
They are very common in the cryptocurrency space, as cryptocurrencies often experience high demand at one moment and much less interest in another.
Bull-run
Bull-run means there are many buyers. So demand is rising and along with it the price of the given asset. During a bull-run, it's very likely that the value will go up for some time.
Causes of bull-run:
It's caused either by good news for investors or by manipulated public opinion, which is also called an inflated bubble. But no one knows when that bubble will burst, so it's better to avoid these situations.
Why be careful?
Because when the general public finds out about it and jumps on that moving train, that's when the big players jump out. These situations often happen with meme coins, which are created based on some meme and then the founders rob their supporters.
Bear-run
Bear-run means when there are many sellers. So demand is falling and along with it the price of the given asset. During a bear-run, it's likely that the price of the given asset will go down for some time.
Shorting during bear-run:
In trading, this situation uses a method called shorting, where you actually borrow shares from your broker, sell them at the peak and close the trade when the value is down. But you have to put in part of your own capital, which you'll lose in case your shares grow. Because the broker doesn't want to lose his own funds that he lent you. So the broker is entitled to close your position if the amount of shares you bought grows by your deposit.
Because the broker doesn't want to lose his own funds that he lent you. So the broker is entitled to close your position if the amount of shares you bought grows by your deposit.
Bear-run summary
It's a completely opposite process to normal investing. So in case of stock growth on your short, you're losing money. During a bear-run, it's good to invest using the classic method as well, if the company is quality.