TL;DR terms from conventional finance don’t always translate well to crypto.

People have started talking about a ‘bear market’ for bitcoin and crypto, rather than a normal ‘correction’ from a market high. Is there a difference, and if so, what is it?

The last major bear market we had was in the aftermath of 2013’s bubble. This time, there was no mistaking it: it lasted for over a year and saw bitcoin fall to less than 20% of its all-time high, bottoming out in the $200 range after topping $1,200. This time, it has happened faster, with bitcoin dropping 60% in just three months. Is that a bear, or a correction?

Technically, it’s a bear – but that term is practically meaningless in crypto. In traditional finance, a ‘correction’ is typically defined as a 10% drop from a high, before resuming the uptrend. A bear market, however, is a minimum 20% fall over a period of two months or more.

So according to mainstream finance, we’re in a bear market. But when you put that in the context of 10% or 20% swings in value being nothing out of the ordinary for crypto, it’s a more-or-less meaningless label to apply.

For more information, see https://www.stride.ws/blog/the-difference-between-a-correction-and-a-bear-market.

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