$BTC

Bear Market of Bitcoin: What It Is and How to Survive the Decline

A bear market in the context of Bitcoin is a period of sustained price decline of BTC, typically 20% or more from the previous peak, accompanied by pessimism among investors and decreased trading activity.

Why Do Bear Markets Happen?

The reasons can vary:

• Tight monetary policy (e.g., interest rate hikes by the Fed),

• Mass sell-offs by investors,

• Collapse of major crypto funds (like Terra or FTX),

• General cooling of interest in risk assets.

Examples:

• 2018: BTC fell from $20,000 to ~$3,000

• 2022: Collapse from $69,000 to ~$15,500

Each bear cycle lasts from several months to 1-2 years, usually followed by growth (bull market).

What Should an Investor Do?

✅ Stay Calm

✅ Analyze Projects for the Long Term

✅ Use DCA Strategy (Dollar-Cost Averaging)

❌ Don't Panic and Sell at a Loss

Conclusion

A bear market is not the end, but an opportunity to prepare for the next surge. It is during these periods that the strongest market players are formed, and the foundations for future profits are laid.