Bear

In crypto trading, a "bear" refers to a market sentiment characterized by declining prices. It describes a period when investors anticipate continued price decreases, leading to a pessimistic outlook on the market.

During a bear market, traders often sell off their assets to avoid losses or to capitalize on short-selling opportunities. This selling pressure further drives prices down, creating a downward trend. As a result, trading volume tends to be high during bear markets.

Examples of bearish market conditions include:

1. Bitcoin Bear Market (2018-2019): Following the cryptocurrency's peak in December 2017, Bitcoin entered a prolonged bear market, with its price declining steadily throughout 2018 and early 2019. This period was characterized by widespread pessimism and a significant decrease in investor confidence.
2. Altcoin Bear Market (2018-2019): Many altcoins experienced even sharper declines during the same period as Bitcoin's bear market. Coins like Ethereum, Ripple, and Litecoin saw substantial losses in value as the overall cryptocurrency market sentiment turned bearish.
3. COVID-19 Pandemic (2020): The onset of the COVID-19 pandemic in early 2020 triggered a global economic downturn, affecting various financial markets, including cryptocurrencies. Bitcoin and other digital assets experienced a sharp decline in prices, reflecting the broader bearish sentiment in traditional financial markets.

In summary, a bear market in crypto refers to a period of declining prices and negative investor sentiment, often leading to increased selling pressure and downward trends in asset prices.