Bearish Market

Definition ∞ A Bearish Market describes a period where asset prices are generally declining, and investor sentiment is pessimistic. Participants anticipate further price drops, leading to selling pressure. This market condition is characterized by a sustained downturn in asset values. Such periods can significantly affect digital asset valuations and trading activity.
Context ∞ In cryptocurrency news, reports frequently discuss bearish market conditions, analyzing factors such as macroeconomic trends, regulatory actions, or specific protocol vulnerabilities that contribute to price depreciation. Understanding a bearish market helps observers interpret price movements and assess potential risks. Periods of prolonged decline test the resilience of digital asset projects and investor conviction.