A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs An all-time-high (ATH) is the highest historical price level reached by a crypto asset, security, commodity, or index during tradingLearn more amid widespread pessimism and negative investor sentiment.
Bear markets can be cyclical or longer-term. The former lasts for several weeks or a couple of months and the latter can last for several years or even decades. Short selling, put options, and inverse ETFs are some of the ways in which investors can make money during a bear market as prices fall.
Given how volatile the cryptocurrency market is, it is difficult to determine a bear market and when we get out of one. Traditionally, a bear market is defined as a period of negative returns, where stock/ commodity prices record a dip of 20 percent or more from recent highs. It is not unusual for the fall in prices to be followed by a sense of pessimism among investors.