A bear market refers to a market condition in which the prices of securities, such as stocks or cryptocurrencies, experience a significant and sustained decline, generally defined as a drop of 20% or more from recent peaks. This downward trend is often accompanied by widespread pessimism and negative investor sentiment, leading to further selling and price drops. Bear markets can be triggered by various factors, including economic recessions, geopolitical tensions, or significant changes in market fundamentals. During these periods, investors may seek safer investments, and market volatility tends to increase. Understanding bear markets is crucial for developing effective investment strategies and managing risks in a declining market environment.
