What is Bear?
Let's find out Bear meaning, definition in crypto, what is Bear, and all other detailed facts.
A bear in the context of traditional and crypto markets is a person who holds a negative outlook on the market and expects the prices to decline over an extended period of time. The market situation where the prices move downward for a long time frame is referred to as the “bear market”.
A typical characteristic of a bear market is the tendency of traders to sell rather than buy. Bitcoin (BTC) experienced a bearish decline between 2013 and 2015 which lasted 410 days. The reasons for maintaining a bearish outlook may vary depending on the coin or token in question.
When it comes to the crypto market, investors and financial experts from the mainstream markets tend to hold a bearish outlook, believing that the momentum of digital currencies is unsustainable in the long run.
Within the crypto community itself, shifts towards a bearish outlook are tied to particular events happening in the market. Bear markets typically precede Bitcoin halving events, when the time required to validate a block on the chain doubles. Halving events often cause sustained upswings, known as bull markets.
Bear markets are not price corrections – events when the price of an asset drops by more than 10% compared to the most recent peak. In some cases, a price correction may lead to a bear market.