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Bear Market

A financial market where prices are falling or expected to fall.

A bear market is a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. Bear markets are often associated with declines in an overall market or index like the S&P 500, but individual securities or commodities can be considered to be in a bear market if they experience a decline of 20% or more over a sustained period of time—typically two months or more.

What is a Bear Market in Crypto?

In the world of crypto, a bear market refers to a sustained period of declining prices and pessimistic market sentiment. During a bear market, the overall trend for cryptocurrencies is downward, and investors tend to be cautious or even sell off their holdings. Here's a closer look at the key aspects of a bear market in the crypto industry:

Definition and explanation of a bear market in the context of cryptocurrency:

  • A bear market in crypto is a phase where the prices of cryptocurrencies, on average, experience a significant and prolonged decline.
  • It is characterized by a prevailing negative sentiment among investors, leading to reduced buying activity and an overall pessimistic outlook.
  • Bear markets can occur for specific cryptocurrencies or affect the entire crypto market as a whole.

Key indicators and characteristics of a crypto bear market:

  • Significant price decline: Cryptocurrencies experience a substantial decrease in value, often by 20% or more from their recent highs.
  • Increased selling pressure: Investors tend to sell their holdings, leading to higher trading volumes and downward price pressure.
  • Lack of positive news and optimism: Negative news, regulatory concerns, or lack of market catalysts contribute to the bearish sentiment.

Historical examples of significant bear markets in the crypto industry:

  • The 2018 Crypto Winter: Following the bull run of 2017, many cryptocurrencies experienced a prolonged bear market throughout 2018, with significant price declines.
  • The 2020 COVID-19 Crash: The global pandemic caused a sudden market crash in March 2020, impacting the crypto market and leading to a short-lived bearish period.
  • Various Altcoin Bear Markets: Individual cryptocurrencies, especially altcoins, have faced their own bear markets, with notable price declines and extended periods of negative sentiment.


The crypto bear market of 2018 saw Bitcoin drop from its all-time high of nearly $20,000 to around $3,000.


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