Definition ∞ A bearish phase signifies a period in financial markets where asset prices generally decline. This market sentiment is characterized by pessimism among participants, leading to sustained selling pressure. Investors anticipate further price drops, prompting them to sell holdings or avoid new purchases. This trend typically reflects a broad lack of confidence in an asset’s future value or the overall economic outlook.
Context ∞ Reports on a bearish phase are common in cryptocurrency news, indicating a downward movement in digital asset values like Bitcoin or Ethereum. Such periods often follow significant market events, regulatory uncertainty, or macroeconomic shifts affecting investor risk appetite. Market observers closely monitor technical indicators and fundamental developments to predict the duration and severity of these downturns.