A bear market provides the best opportunity for more people to purchase bitcoins or other cryptocurrencies at a lower price. While the bull market rewards those who held through the bear market either by holding or buying dips. Therefore, both terms help the cryptocurrency market, and without these two phenomena, the market will not function properly. The image is self-explanatory, and through such phrases, people should be able to better understand how the market works.

A bear market and a bull market represent opposite trends in the stock market. A bull market occurs when stock prices rise by at least 20% from recent lows, reflecting investor optimism, economic growth, and high employment. Investors buy more, expecting further gains. In contrast, a bear market happens when prices fall by 20% or more from recent highs, driven by economic downturns, high inflation, or geopolitical crises. Investors sell off assets, fearing further losses. Bull markets encourage risk-taking, while bear markets promote defensive strategies like bonds or dividend stocks. Historically, bull markets last longer, but bear markets, though shorter, can be volatile. Recognising these trends helps investors adjust strategies—buying undervalued stocks in bear markets and capitalising on growth in bull markets.