Definition ∞ A crypto bear market is a sustained period where the prices of most cryptocurrencies experience significant and prolonged declines. This market condition is typically marked by negative investor sentiment and reduced trading activity. During such phases, asset valuations decrease substantially, often leading to widespread liquidation events. It represents a downturn in the overall digital asset economy.
Context ∞ Understanding a crypto bear market is essential for interpreting news related to digital asset performance and investor behavior. These periods often test the fundamental strength of various blockchain projects and expose weaknesses in overleveraged positions. Current discussions often center on strategies for navigating these market cycles, including dollar-cost averaging and focusing on projects with strong underlying technology. The long-term impact of bear markets often includes consolidation and the emergence of more resilient protocols.
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