Bear Market

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What is a Bear Market?

A bear market happens when a market exhibits consistent price declines over a period of time. Further, it is typical seen as a 20% fall from highs due to market pessimism and negative sentiment.

A commodity is considered to be in a bear market if the sustained period is over two months or more. The opposite of a Bear Market is a Bull Market.

Understanding Bear Markets

Bear markets are a sure sign of decreased investor risk-taking and often follow (and are followed by) bull markets. A bear market in cryptocurrency can be as short as a few days and, thanks to volatility of most cryptocurrency markets, can lead directly into flat or bull markets, depending on the currency.

What is the source of the bear/bull imagery. Wall Street has long use the image of a bull and a bear to describe various market conditions. In this case, a bear “bears down” on a market i.e. slows it down while a bull “pushes up” a market, presumably with its horns.

John Biggs

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times.He has written eight books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York.