What Is A Bear Market?
You've probably heard the term bear market, especially if you invest in crypto or stocks. But what does it really mean to be in a bear market? And how can you spot a bear run before it’s too late? In this article, we dive into the world of declining markets, pessimistic sentiment, and smart strategies.
Go Back
🕒 8:53 PM
📅 Nov 21, 2025
✍️ By chrison2
°A bear market is an extended period where the prices of assets like stocks or crypto continue to fall.
°Bear markets are often caused by pessimism and uncertainty.
°The term comes from the downward attack of a bear and symbolizes a falling market.
°Fear, FUD, and panic selling accelerate the decline and are often disconnected from fundamental values.
📍What Does a Bear Market Mean?
A bear market is a period in which the value of an asset, such as stocks or cryptocurrencies, continues to decline over a longer period. Usually, we speak of a bear market when prices have dropped by 20% or more compared to a previous peak. This often comes with fear, uncertainty, and investor caution.
Where a bull market is characterized by optimism and energy, a bear run is marked by uncertainty and caution. Investors fear a further drop in individual stocks and are hesitant to invest new money. This creates a negative spiral that pushes the market even lower. Technical analysis during these times also tends to look negative, which only reinforces the effect.
📍Why Is It Called a Bear Market?
The term bear market comes from English and refers to the way a bear attacks: with its claws from top to bottom. This symbolizes the falling prices during a bear market. A bear market is the opposite of a bull market. In a bull run, prices rise significantly. It's called a bull run because a bull attacks with its horns from the bottom up, symbolizing an upward trend.