Bear Market

Definition ∞ A Bear Market describes a period where asset prices in a specific market consistently decline by 20% or more from recent highs. This sustained downward trend is typically accompanied by widespread pessimism among market participants. In cryptocurrency, it signifies a prolonged period of falling digital asset values, often marked by reduced trading activity and investor confidence. Such conditions can lead to significant capital depreciation across various crypto holdings.
Context ∞ The concept of a Bear Market is frequently discussed in crypto news as it signals challenging periods for investors and projects alike. During these times, market analysts focus on identifying potential bottoming patterns or catalysts for recovery. Understanding this market phase is essential for interpreting news related to investment strategies, project funding, and overall digital asset sentiment.