Bear
A bear is a term used in the cryptocurrency market to describe a period of negative price movements or an overall downward trend in prices. The opposite of “bear” is “bull”, which describes a period of positive price movement or an overall upward trend in prices. Bears may be caused by market manipulation, unexpected news, technical analysis signals, and other factors that can lead to selling pressure on the underlying asset.
The term originates from the way bears attack their prey – they swipe their paw downwards as if trying to push down the price. Similarly, bulls are said to attack their prey by thrusting upwards with horns; thus representing bullish sentiment for rising prices.
Bears often start when investors become fearful and begin selling off assets due to perceived risk or uncertainty about future performance. This typically leads to downward pressure on asset prices until buyers return en masse once more confidence has been restored. In extreme cases where sellers outnumber buyers significantly, this can cause significant drops in value across entire markets over short periods of time – also known as ‘crashes’.