Bear Market

Unfavorable market conditions characterized by overly low unit prices of popular cryptocurrencies or stocks.

A bear market refers to adverse and often difficult market situations whereby the unit price of a popular crypto asset falls close to or below its all-time low. The more peculiar characteristic of this decline in market price is that it happens within a short period so that the graphic trend generally shows a straight drop rather than a drop-rise-drop-rise situation.

Bear markets are not native to crypto markets but are also characteristics of traditional trading markets like the stock market and real estate. There are general measures in place to identify them, such as 20-30% drops in the unit price of a commodity within a 60-day interval. There are also types of bear markets depending on the percent drop in price. Nevertheless, a bear market is often regarded as a good time to buy cryptos and other traded items. It may also be the telltale sign that a commodity has lost value.