What Is Bear Market?
A bear market is a prolonged period where asset prices decline substantially — conventionally defined as a 20%+ drop from recent highs. In crypto, bear markets are more extreme: Bitcoin has historically dropped 70-85% from cycle peaks, and altcoins often lose 90-99% of their value.
How Bear Market Works
Bear markets progress through phases: denial ("it's just a dip"), capitulation (panic selling), depression (low volume, apathy), and finally accumulation (smart money quietly buying). Each crypto bear market has lasted roughly 1-2 years. Volume dries up, social media activity plummets, and many projects fail.
Why It Matters for Traders
Bear markets create the best risk-adjusted entry points for the next cycle. Traders who identify bear market bottoms through on-chain metrics (like NUPL, MVRV, and exchange flows) and macro sentiment indicators can accumulate positions at deep discounts. The key is capital preservation — surviving the drawdown with enough capital to deploy at the bottom.
