Bear Market
A prolonged stretch of falling prices and weak sentiment, usually marked by a drop of 20% or more.
A bear market is the opposite of a bull run: prices fall for months, and each rally fails. The common rule of thumb is a decline of 20% or more from the peak. Crypto's 2022 bear market erased roughly two trillion dollars in value and took down lenders like Celsius and the exchange FTX.
Bear markets punish leverage and reward patience. Volume thins, projects shut down, and the loudest voices go quiet. They also tend to be where the next cycle's winners are quietly accumulated. Calling the bottom is hard; most people who try are early.
Related terms
A sustained period of rising prices, when buyers dominate and optimism pushes valuations higher across the market.
BearishDescribes an expectation that a price will fall, or a position set up to gain when it does.
VolatilityA measure of how sharply and how often a price swings, in either direction, over time.
All-Time Low (ATL)The lowest price an asset has ever traded at since it began trading on the market.