The crypto market turned green in the first week of May, but skepticism remains strong. Some believe current signals show signs of a larger upcoming bullish cycle, especially as Bitcoin breaks a key psychological threshold. The volatile increase (between early November and December 2013) was quickly followed by a steep decline as most market participants sought to book profits in a etoro low-liquidity market. The result was a full-blown crypto winter that lasted for two years with the global market cap dropping from $15 billion to around $3.5 billion at its lowest point in early 2015. Investors undergo contrasting feelings at different stages of bear markets.
- The Fear & Greed Index—a tool that measures market emotions—plummeted from 53 (neutral) in January 2025 to just 20 (fear) by February.
- Though they will bring on losses and declining markets in the near term, they also provide savvy investors opportunities to buy at low prices.
- The duration of a coin bear market is extremely speculative—anywhere from a few months to greater than one year—depending on market conditions and other variables.
- Financial planning involves hedging against market volatility.
- One of the best things you can do after getting involved in cryptocurrency is to keep a level head and don’t panic when things start to go south.
- Recently, there’s been talk about the crypto market heading back into a bear phase.
NFTevening is an award-nominated media outlet that covers NFTs and the cryptocurrency industry. Before making any high-risk investments in cryptocurrency or digital assets, investors should conduct thorough research. Please be aware that any transfers and transactions are done at your own risk, and any losses incurred are entirely your responsibility. NFTevening does not endorse the purchase or sale of any cryptocurrencies or digital assets and is not an investment advisor. Additionally, please note that NFTevening participates in affiliate marketing.
Negative comments on X (Twitter) and Reddit increased during the “down” times, as former enthusiasts became pessimistic.
Spreading your investments across different crypto assets and traditional investments creates resilience during market downturns. Meme coins, which were once popular among retail investors, have experienced a significant decline. Assets like Dogecoin and Shiba Inu have lost over 70% of their value, reflecting how quickly risk appetite can disappear in uncertain markets. As of late February 2025, Bitcoin had entered bear territory, having declined 28% from its January peak of $109,350.
Using the NASDAQ as a reference point, he estimates that a bear market could last anywhere from 7 to 14 months. Bitcoin, as the first and most widely recognized cryptocurrency, plays a central role in the sector’s valuation, commanding a substantial share. At its highest, bitcoin’s market capitalization has approached $2 trillion, representing roughly two-thirds of the landscape’s overall market value. Because of this propensity toward volatility, cryptocurrency markets may stay in a general downturn longer than more traditional markets. Predicting a bull run is challenging; market trends, investor sentiment, and external factors all influence timing.
How to identify a bear market in crypto
Bear markets can be triggered by a range of factors, including adverse regulatory news, macroeconomic downturns, or overextended bull runs that lead to profit-taking and market corrections. In a bear market, the overall value of crypto assets drops significantly, and volatility tends to increase as panic selling takes hold. The crypto bull market is an exciting period marked by rising prices, increased investor confidence, and a positive feedback loop that fuels further growth. During this time, digital asset values surge as new trends emerge and market sentiment turns optimistic. A bear market in crypto refers to a prolonged period of declining prices, typically characterized by a drop of 20% or more from recent highs.
What should I consider when investing during a cryptocurrency bear market?
As BeInCrypto reported, the BitMex founder claimed Bitcoin could slump to $70,000 before a potential rebound. Given that the NASDAQ is currently 28% overvalued, he anticipates a decline of about 17%, bringing the index down to 15,000. While such a decline needs a trigger, he suggests that the Fed’s decision to keep interest rates coinjar reviews steady could be enough to set it off.
It’s not always easy, but there are some telltale signs to watch out for. Another noteworthy data point is the Crypto Fear & Greed Index. It rose to 73, entering the “Greed” zone — its highest level in two months. This suggests that investor sentiment is shifting from caution to excitement. Although some cryptocurrencies staged a comeback at the start of 2023, no one knows for sure if the rally has legs. Volatility is likely to continue in the near term as monetary policy remains tight and the industry grapples with residual fallout from the collapse of some major crypto companies.
Strategies for Surviving and Profiting During Coin Bears
Setting these at 15-20% below your entry points forces disciplined exits when emotions might otherwise cloud judgment. One advantage of bitbuy canada review blockchain technology is that it gives us transparent data about network activity. Social media activity offers an additional perspective on market psychology.
Best Meme Coin Trading Platforms in 2025
Currently, ETH trades at $2,657, marking a 45% drop from its ATH. Earlier, many market participants confidently predicted that the altcoin would reach between $8,000 and $10,000, but those expectations have yet to be realized. From the look of things, the disbelief stage happened around the first quarter of 2023, when the Bitcoin price began to post gains consistently. Meanwhile, the “Thrill” period probably happened during the ETF approval earlier in January this year, as there were calls for people to double down on buying BTC. If you’re patient, like Buffett, it’s a lot easier to buy when you stand to gain the most. I think that trigger may be as simple as the Fed not cutting rates at all this year,” wrote Peterson.
Diversifying Your Assets Can Minimize Risk
By selling the most expensive assets first, traders minimize capital gains taxes, preserving more profit and enhancing overall investment returns when market prices eventually decline. The most common solitary question during a period of downturn is, “Should I buy now? Some consider bear markets an opportunity to purchase discounted assets because prices will be short-term lower than their intrinsic value.
Explaining the Concept of Bear Markets
- So, the maximum you could lose from that crypto investment is $100.
- It also took an extra year for prices to recover to the previous high, effectively ending the longest crypto winter to date.
- In addition, crypto bear markets are often stronger and more prolonged than other commodities (e.g, an 85% price drop over 10 weeks).
For instance, the disbelief marks the end of the bear market when cryptos begin to move into the bull phase. There are also phases of thrill, anxiety, euphoria, or complacency. The event, which surprisingly happened before the halving, sent shockwaves around the market. At that time, many suggested that crypto prices would hit higher highs. The global cryptocurrency market is capitalized at over $3 trillion.
Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions. The general consensus is that the most recent crypto winter started in 2022. In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting.
Take to heart the cryptocurrency mantra, “Do your own research” (often abbreviated DYOR), and never get involved in a transaction with more money than you can afford to lose. When the chips are down and prices tumble, there’s little room for mistakes. It’s at this time that research becomes more important than ever. One of the best things you can do after getting involved in cryptocurrency is to keep a level head and don’t panic when things start to go south. NFTevening is a renowned and award-nominated media platform dedicated to reporting on the cryptocurrency industry.
