Are you new to the cryptocurrency world and feeling a bit lost? Don't worry, you are not alone. The cryptocurrency space can be daunting for newcomers, with its many terms, abbreviations and definitions that can be difficult to understand.
ATAIX crypto glossary will help make sense of some of the most common cryptocurrency terms and definitions. Armed with this information, you'll be ready to start participating in this exciting and innovative new economy!
A bear market is a continued period of falling prices in the securities markets. Bear markets are typically characterized by widespread pessimism and negative sentiment. Many investors sell their stocks and other securities in a bear market, leading to further declines in prices.
The most famous bear market in recent years was the 410-day decline in the price of Bitcoin between 2013 and 2015. During this time, many people lost faith in the future of Bitcoin and sold their coins, leading to further price declines.
There are many potential reasons why someone might adopt a bearish outlook on a particular coin or token. Some may believe that the underlying technology is flawed, while others may simply be responding to market conditions. Whatever the reason, bear markets can be difficult times for investors and often lead to significant losses.
Cryptocurrencies have seen enormous gains over the years, but many mainstream financial commentators and institutional investors remain bearish on their long-term prospects. These individuals argue that blockchain technology has not and will never prove to have any real-world utility and that prices will collapse when this is recognized.
A bearish outlook might accompany specific events, particularly among dedicated crypto traders. For example, Bitcoin often experiences bear markets before halving events, which tends to trigger bull markets—periods of sustained upswings.
Bear markets should not be tangled with price corrections. This refers to a decline in the price of an asset or security of more than 10% equated with its most recent peak. A price correction may prompt a bear market or be short-lived.