The cryptocurrency market, like other financial markets, experiences cyclical expansions and contractions—commonly known as bull and bear markets. These market changes are driven by multiple factors including investor sentiment, technological innovation, regulatory policy shifts, and macroeconomic trends. As the crypto ecosystem matures, understanding these market cycles and adjusting investment strategies flexibly have become essential skills for every trader.
Psychological Reality During a Bear Market
When Bitcoin drops from its all-time high of $20,000 to $3,200, and your portfolio turns green on the screen, many face a dilemma: passively wait or actively respond? During a bear market, asset devaluation may force you to liquidate some positions to cover living expenses. Under this pressure, it becomes especially important to assess your risk tolerance and revise your investment plan.
History shows us that from December 2017 to 2019