A bear market refers to a prolonged period of declining prices in the cryptocurrency market. During a bear market, investor confidence diminishes, trading volumes drop, and most digital assets see their value plummet, sometimes by 50% to 90% or more compared to their peaks.

The term “bear” comes from traditional finance: the bear attacks by swiping its paws downward — a symbol of prices falling.

Characteristics of a crypto bear market:

• Widespread and sustained price decline,

• Dominant sentiment of fear, doubt, or capitulation,

• Reduction in activity on exchanges and in DeFi,

• Less media attention and fewer new entrants to the market.

Historical examples:

• 2018–2019: after the ICO euphoria of 2017, Bitcoin plummeted from nearly $20,000 to $3,000,

• 2022–2023: collapse after the peaks of 2021, cascading failures (Terra, FTX, etc.).

The bear market is often seen as a phase of cleansing, where the weaker projects disappear, preparing the ground for the next bull run.