What is a Bear Market?. A bear market is an extended downturn with falling prices and cautious sentiment. Liquidity thins and rallies fade quickly.
How it works
Negative catalysts, deleveraging, and slower adoption feed lower highs and lower lows.
Why it matters
Bear markets reward discipline—accumulating knowledge, managing risk, and building positions gradually.
Common pitfalls
- Panic‑selling quality assets
- Forcing trades in thin markets
- Ignoring tax implications of exits
Quick example
You rotate to stronger balance‑sheet projects and keep ample stablecoins to survive volatility.
See also
- Bull Market
- Market Sentiment
- Dollar‑Cost Averaging
TL;DR: What is a Bear Market? defined in plain English with practical next steps.
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