The market of digital assets is characterized by two tendencies that constantly change one another – bull and bear trends. While a bull tendency demonstrates increasing buzz around crypto, the cryptocurrency bear market trend, on the contrary, indicates a period of the market downward trend and decreased interest on the part of investors.
In this article, we will discuss what happens with cryptocurrency prices live during bear and bull trends.
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Bear Trend
A bear market is typically characterized by a prolonged period of declining rates, which often leads to a negative mood in the market. During this phase, there is an atmosphere of fear and uncertainty among investors, resulting in reduced buying activity and increased selling pressure. The downward trend can persist for weeks, months, or even years, varying in intensity and duration.
Causes of a cryptocurrency bear market:
- market manipulation;
- regulatory actions;
- security breaches;
- negative news;
- economic uncertainty;
- general market cycles;
- overvaluation of certain projects;
- excessive speculation;
- the imbalance between supply and demand.
During a bear market, the effects reverberate throughout the entire crypto ecosystem. The most apparent impact is the decline in the prices of digital assets, which can lead to substantial losses for investors. As prices drop, enthusiasm and adoption may diminish, causing financial strain or even closure for some projects. Additionally, there is a decrease in trading volumes, reduced market liquidity, and a decline in overall market capitalization, all of which are common consequences of a cryptocurrency bear market.
What is a Bull Run in Crypto?
A bull run in crypto is an exhilarating period when cryptocurrency prices surge. It sparks excitement and FOMO among investors, driving up demand and creating a buying buzz. However, it is advised to be cautious as markets can be volatile. A bull run showcases the transformative power of crypto and its growing acceptance. It's an opportunity for financial prosperity.
Whether it is a bull or bear market now that you are reading this article, you should keep in mind, that this period will pass and the next trend will exchange it. So act accordingly to the market situation and stay up-to-date with the latest news and events in this field.
To keep abreast of the latest market news, read the WhiteBIT blog. This resource is helpful for beginners and advanced crypto investors. The blog regularly publishes articles about new and promising projects in the market for you to take a chance and invest at an early stage.
