As of August 2025, the question on many investors’ minds is whether we are truly in a bull market. After months of volatile swings and economic uncertainty, the stock market has made an impressive recovery, so much so that many analysts agree – yes, we are currently in a bull run. But beneath the surface, the picture is more nuanced.
A bull market is typically defined as a sustained increase of 20% or more from a recent low, driven by improving fundamentals, rising investor confidence, and broad participation across sectors. By that definition, the S&P 500 qualifies. After hitting a near-term bottom earlier in the year, the index has rallied significantly and recently notched new all-time highs. Importantly, this rally is no longer just about Big Tech. Cyclical sectors such as industrials, financials, and consumer discretionary are also showing strength, signalling a more robust and widespread market uptrend.
Analysts across Wall Street generally agree that the current momentum reflects a legitimate bull market. Several point to a combination of factors driving this resurgence, stronger-than-expected corporate earnings, continued optimism around artificial intelligence, and a surprisingly resilient consumer economy. These elements have fuelled risk appetite and encouraged investors to re-enter the market with greater conviction than at any point since 2022.
However, despite the current optimism, this rally is not without its risks. One of the most frequently cited concerns is valuation. Metrics such as the Shiller price-to-earnings ratio and market cap-to-GDP are at levels reminiscent of the dot-com era. In other words, stocks are expensive by historical standards. Investor sentiment has also grown increasingly bullish, perhaps too much so, raising concerns that the market may be overbought.
In addition, market breadth, while improved, has shown some signs of weakening in recent weeks. Fewer individual stocks are trading above their long-term moving averages, which could indicate that momentum is becoming more concentrated. Compounding these concerns are seasonal patterns. August and September have historically been choppier months for equities. Combined with lingering macroeconomic uncertainties ranging from inflation to global trade tensions, this makes the road ahead potentially volatile.
Looking forward, many analysts still see room for further gains. Some forecasts suggest the S&P 500 could climb an additional 10–15% by year’s end, particularly if AI-related innovation continues to boost productivity and earnings. Institutions like Wells Fargo have projected the index could reach as high as 7,000 before the current cycle peaks. Still, most experts recommend a balanced approach acknowledging the upward trend, but remaining cautious about chasing returns in an overheated market.
Meanwhile, the crypto market’s bullish phase is driven by renewed institutional interest and regulatory clarity across key jurisdictions. Bitcoin recently broke through the $115,000 level for the first time, while Ethereum and Solana are seeing increased activity tied to decentralized finance (DeFi), tokenized real-world assets, and AI-based smart contracts. The approval of several spot Bitcoin and Ethereum ETFs earlier this year has brought in a wave of retail and retirement fund capital. Despite volatility and occasional pullbacks, many analysts now see crypto as a maturing asset class that is participating in the broader risk-on rally, though its moves remain sharper and more sentiment-driven than traditional markets.
In summary, based on all signs, the answer is yes: we are in a bull market. The recovery has been strong, the rally has broadened, and economic fundamentals remain supportive. But the risks are real. Elevated valuations, seasonal headwinds, and geopolitical uncertainty mean that investors would be wise to stay alert. For now, the bull is running, but how long and how far it will go remains to be seen.
