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What is a bear market?
A bear market is a market in which prices are generally declining over a period of months or years. It names a trend in progress or past; it does not say when, or whether, prices recover.
What it means for you
In long declines trading often thins, so spreads widen and selling can cost more than the price alone suggests. Some lending and yield platforms have restricted withdrawals in falling markets, so funds held with a company can become hard to reach exactly when you want them.
How it works
The CFTC defines a bear market by its trend: prices generally declining over months or years. FSOC describes how crypto declines can feed on themselves. Falling prices expose leveraged positions, forced liquidations push prices lower, and the cycle repeats. Investors then try to withdraw from platforms, which can strain firms that lent out or locked up customer funds; when large crypto platforms froze withdrawals, more than a million customers each could not reach their money. Because customers cannot move balances directly between platforms, they can be stuck on one during the stress.
Sources: CFTC: Glossary, FSOC: Report on Digital Asset Financial Stability Risks and Regulation 2022 · checked 4 October 2026
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Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.