Crypto Dictionary
Bear Market
Definition
A market condition where prices are falling or are expected to fall.
Deep Dive
A bear market describes a prolonged period in the financial markets where asset prices are falling or are widely expected to fall significantly. It is typically characterized by a sustained decline of 20% or more from recent highs, coupled with widespread pessimism, fear, and a lack of investor confidence. During a bear market, selling pressure dominates buying pressure, leading to a general downtrend in asset valuations across the board, affecting everything from individual stocks to entire cryptocurrency markets.
Examples & Use Cases
- 1The cryptocurrency market experienced a severe bear market throughout 2018, following the massive bull run of 2017, with many assets losing over 80% of their value.
- 2Analysts predict a potential global economic recession could trigger a multi-year bear market across traditional equities and digital assets.
Related Terms
Bull MarketCorrectionVolatility