The cryptocurrency market has been on a roller coaster ride in recent years. In particular, the market experienced a massive bull run in 2021, which saw the price of Bitcoin reach an all-time high of nearly $69,000. This bull run was followed by a sharp correction, which saw the price of Bitcoin fall to around $30,000

There is much debate about whether the 2021 bull run was organic or manipulative. Some argue that the bull run was driven by genuine demand for cryptocurrencies, while others believe that it was fueled by speculation and manipulation.

So the first question now is what is BULLRUN?

A bullrun is a period of sustained price increases in a particular market, such as the stock market or the cryptocurrency market. Bull Runs can be caused by a variety of factors, including: Increased investor confidence, Economic growth,Technological innovation, adoptions, etc.

Organic Bullrun

An organic bull run is one that is driven by genuine demand for an asset. This type of bull run is often characterized by a gradual increase in price over time. In other words Organic bullruns occur when there is genuine demand for cryptocurrencies driven by factors such as technological advancements, adoption by mainstream institutions, or positive regulatory developments. These factors create a sense of optimism among investors who believe in the long-term potential of cryptocurrencies.

For instance, when major companies like Tesla announced their acceptance of Bitcoin as a form of payment or when countries like El Salvador adopted Bitcoin as legal tender, it sparked enthusiasm among investors and led to increased demand for cryptocurrencies.

In an an organic Bull Runs investors don't get to lose their money because it's genuine and can be trusted.

investors in manipulative market

Manipulative bullrun

On the other hand, manipulative bull runs involve intentional actions aimed at artificially inflating market prices through various means in order to have gains and this happens at the expense of other investors' assets.

I also want to add manipulative Bull Runs most especially in the crypto space has been the reason why so many investors won't get involved with any project.

And also manipulative Bull Runs has been the reason why so many investors have gone into depression, after losing a good amount of money to projects that are manipulated

Market manipulation can take different forms such as pump-and-dump schemes or spoofing.

Pump-and-dump schemes involve artificially inflating the price of a particular cryptocurrency through coordinated buying activity followed by selling off at peak prices to unsuspecting investors. This practice creates an illusion of organic growth but ultimately leads to significant losses for those who bought in at inflated prices.

Spoofing, another form of market manipulation, involves placing large buy or sell orders with the intention of creating false market signals. Traders who engage in spoofing can manipulate prices by canceling these orders before they are executed, thereby influencing market sentiment and potentially triggering a bullrun.

Evidence for an Organic Bull Run

There is some evidence to suggest that the 2021 bull run was organic. For example, the number of active cryptocurrency wallets increased significantly during the bull run. Additionally, the amount of institutional investment in cryptocurrencies also increased during this time.

Evidence for a Manipulative Bull Run

There is also some evidence to suggest that the 2021 bull run was manipulative. For example, there were reports of wash trading and other forms of market manipulation during this time. Additionally, the price of Bitcoin rose sharply in a short period of time, which is a hallmark of a manipulative bull run.

Manipulative bull runs in the crypto markets can lead to inflated asset prices, creating a speculative bubble. When the bubble bursts, investors may suffer significant losses, and market stability can be jeopardized. Just like I said earlier, manipulative practices take away the trust in the financial system, undermining the integrity of markets and potentially deterring long-term investors.

Whether a bullrun is organic or manipulative has significant implications for investors. In an organic bullrun, investors who have done their due diligence and invested based on solid fundamentals can reap substantial rewards. However, in a manipulative bull run, unsuspecting investors may fall victim to inflated prices and suffer losses when the market corrects itself.

Conclusion

Note: bullrun can either be organic or manipulative and also can be difficult to know if a bullrun is organic or manipulative

So therefore:

It is difficult to say definitively whether the 2021 bull run was organic or manipulative. There is evidence to support both sides of the argument. However, it is important to be aware of the potential for market manipulation in the cryptocurrency market. Investors should always be cautious and do their own research before investing in any cryptocurrency.

Check out this References

The Cryptocurrency Bull Run of 2021: Organic or Manipulative?" CoinMarketCap.com, https://coinmarketcap.com/currencies/bull-run-finance/

The Cryptocurrency Market Correction of 2022: What Caused It?" Investopedia.com, https://www.investopedia.com/terms/c/cryptocurrency.asp

"Wash Trading: How It Works and How to Spot It" Investopedia.com, https://www.investopedia.com/terms/w/washtrading.asp