Bear Market
A prolonged period of declining prices, typically defined as a drop of 20% or more from recent highs, accompanied by widespread pessimism and negative investor sentiment. Crypto bear markets can be especially severe, with drawdowns of 70-90% from all-time highs.
“The 2022 crypto bear market saw Bitcoin fall from $69,000 to below $16,000, with many altcoins losing over 90% of their value.”
Bull Market
A prolonged period of rising prices, typically defined as a 20% or greater increase from recent lows, accompanied by widespread optimism and strong investor confidence. Crypto bull markets are historically driven by Bitcoin halving cycles, institutional adoption, and new technology narratives.
Market Capitalization
The total value of a cryptocurrency, calculated by multiplying the current price per coin by the circulating supply. Market cap is the primary metric for ranking cryptocurrencies by size and is used to categorize assets as large-cap (>$10B), mid-cap ($1B-$10B), or small-cap (<$1B).
FUD (Fear, Uncertainty, Doubt)
A strategy of spreading negative, misleading, or exaggerated information to create fear and drive down the price of a cryptocurrency. FUD can originate from competing projects, media, regulators, or market manipulators. The term is also used casually to dismiss any bearish news or criticism.