A bear market is not just a bad time for investors — it’s a financial reality you need to understand. If you’ve heard the English term “bear market”, you know it’s used in finance. Let me explain what’s really happening.
Note: The English term “bear market” is the standard financial term for what we call in Croatian “tržišna recesija” (market recession). While there are literal translations like “bear market” or “market decline”, the most appropriate Croatian equivalent that captures both the meaning and sounds natural to the ear is “tržišna recesija”.
And what’s key — we’re in one right now. 🐻
What Is a Bear Market?
A bear market is a period when asset prices fall at least 20% from a recent peak.
But it’s not just a number. It’s a shift in psychology. Investors turn pessimistic. Money starts fleeing. Fear spreads faster than information.
Example: Bitcoin was at $72,000. Now it’s at $42,000. That’s a bear market.
How to Recognize a Bear Market?
🔴 Prices fall constantly — not a one-day drop, but months of decline
🔴 Trading volume falls — less liquidity, and prices drop even lower
🔴 Sentiment is negative — articles talk only about risks, optimists are nowhere to be heard
🔴 Risk avoidance — money flees risky assets for safe ones (dollars, gold, bonds)
🔴 Media talks about disaster — “Crypto is dead!”, “Recession coming!”, “Everything will crash!” 📺
Why Do Bear Markets Happen?
Reason 1: Economic Shock
Inflation rises, central banks raise rates, war breaks out, pandemic hits — something bad happens. Investors get scared.
Reason 2: Excessive Optimism
Prices rose too fast. Someone had to sell first, then it cascades. Like dominos.
Reason 3: Mass Selling
Big players (institutions, funds) start selling. When the big ones fall, the small ones look for exits. Panic is contagious.
Reason 4: Trend Changes
Crypto was the “new” trend. Now it’s less exclusive. Innovation slows. Interest drops.
What Does a Bear Market Look Like in Practice?
Say you own Bitcoin at $60,000.
- Six months ago: Bitcoin was $72,000. You’re already down 17%.
- Now: Bitcoin is at $42,000. You’re down 30%.
- Next: Nobody knows. It could hit $20,000.
The psychological pain is real. Most investors sell at the bottom — exactly when they should buy.
It seems logical: “If it fell to $42,000, why can’t it crash to $10,000?” But that’s not investing logic. That’s fear.
Bear Markets in Crypto History
2017-2018: Bitcoin $20,000 → $3,500 (82% decline). Everyone said crypto was dead. Now it’s 10x higher.
2021-2022: Bitcoin $69,000 → $15,500 (77% decline). Again — “Crypto is dead!” Again it came back.
2024-2026: Bitcoin $72,000 → $42,000 (42% decline). Third time… “Crypto is dead?” 🤔
See the pattern? Every time they say crypto is dead, it comes back bigger.
What You Need to Know About Bear Markets
1. Bear markets are normal
It’s not a mistake. It’s not the end of the world. It’s part of the cycle. Literally every industry has had bear markets.
2. You can’t predict the bottom
Analysts will tell you: “The bottom is now, price is going up!” The next guy will say: “The bottom is at $10,000!” Nobody knows.
3. Panic is your enemy
Most investors lose money because of panic selling at the bottom. Not because the asset is bad — but because they’re scared.
4. Bear markets create wealth
The simplest way to get rich is to buy when everyone is panicked, and wait until everyone is optimistic again.
5. Time horizon is key
If you waited 2 years — the bear market already returned you to profit. If you’re a new investor — you’re in pain now.
What Should You Do During a Bear Market?
Option 1: Wait
If you’re a long-term investor, do nothing. Watch TV. Count the days. Bear markets end.
Option 2: Buy Gradually
If you have cash, buy small pieces during the fall. Buy at $60,000, $50,000, $40,000. Your average cost goes down — this is called “buying lower.”
Option 3: Exit Your Position
If you’re a small investor and can’t handle the fear — sell. Better to be out and at peace, than in and panicked.
Option 4: Close Your Eyes
Seriously: don’t watch prices. Turn off notifications. Come back when you hear Bitcoin is at $100,000 again.
Conclusion: Bear Markets Aren’t the End of the World
There will definitely be more bear markets. Mathematically there must be.
But every time a bear market ended, prices went higher than before.
The question is not: “Will the bear market end?”
The question is: “Am I strong enough to wait?” 🧗
— ADA, Kriptosignal, June 27, 2026.