Understanding the meaning and importance of bear market

In the world of crypto currencies there are two words we hear alot. One of them is bull market or bull run and the other is bear market or bear run.

In today's blog i will talk about bear market and it's importance in people's life. Yes you heard that right, bear market is important for all of us and that's what we are going to understand in this blog.

So let us start by understanding what is a bear market.

What is Bear Market ?

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Let me first clear this out to the readers that this term is used for both stock as well as crypto market but as we are part of the crypto industry, we will talk about this term with respect to crypto currencies itself.

A bear market is a market situation that occurs soon after we observe the highs for majority of the crypto currencies. This is when every currency starts moving down and it marks the beginning of the end of bull run.

The truth is that bear market does not have a universal defination and you will find experts from different industry defining it differently.

Some says that if a downfall of more than 20% occurs from the recent all time high it is said to be a bear market.

So by that defination when btc was around $54k ( coming down from it's ATH ) it was already a bear market for some people.

Anyways just remember that bear market is a difficult time and we can expect huge downfalls in long term for any particular crypto currency.

Take example of hive, we saw it above $3 and today we are below $0.30, this is more than ten times lower than it's all time high.

Why is Bear market important for everyone ?

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Bear market brings majority of the crypto currencies down. Some even observe a new all time low due to the bear market effect.

The bear market is important because it is an opportunity to enter your favourite crypto project at lower prices. Be it bitcoin, ethereum, hive, or any other crypto currency.

Bear market is the best time to enter and make the most out of it when bull market arrives.

Let us take a example to understand how profitable it can be to invest in the bear market.

Example : Investing in hive

If you buys 1000 hive at current price, it will cost you $330 approx. When the bear market says good bye to all of us and bull run arrives.

Hive being a strong currency will try to reach and cross it's all time high. It is already known globally so we will definitely see moves in it.

Best case scenario : hive sets a new ATH

If hive reaches $3.5 for example, that will be a new all time high for it. Your invested amount will become 10X approx that is $3500.

Alternatively : Hive do not sets a new ATH

Even if hive does not sets a new ATH, and it stuck somewhere around $2-3. Then also your invested amount will rise by 7-11 times.

To Conclude

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To conclude, bear market is important because it is the opportunity and time to invest in great projects. Just do your own research, find good projects, and, take entry in them.

It's your choice if you want to smile celebrating your success in next bull run or sit down with the people who will regret not taking interest in crypto when it bear market was there.

I will request readers to always Do their own research and then only decide to invest in a project. You can go and read a detailed blog that i have made on this topic two days ago.

That's all for this blog, i hope i was able to explain what is a bear market and also why it is important for all of us.

I am open to learning and would love to hear out from experienced people here to gain more knowledge on these topics.

Thank you

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