What are the causes of a Crypto bear market?

[Suba]

The application of the term bear market crypto is no different from the world of stocks. However, it is generally recognized (not standard) that a bear market will occur if crypto prices fall by more than 20% from their highest price. For example, the highest Bitcoin price is $68k, so if the Bitcoin price is below $54k and is sustainable then we can call it a bear market. In general, the crypto market is very volatile so bear markets and bull markets will alternate, both influenced by internal and external factors. So in your opinion, what causes the crypto bear market?

 

[Stardom22]

I think that's the nature of the crypto currency. The change in prices is however as a result of the lnternational market trends and dynamics.

 

[neku]

Scams like the FTX scam are the main reason for the crash in the crypto market. People lose faith in crypto because of scams and many withdraw their money at a loss.

 

[King Belieal]

The crypto market is powered by anticipations and speculations. A little bad news can cause negative speculation which would cause people to panic and withdraw their crypto investments leading to a bear market. Whales selling off their holding commonly lead to bear market too.

 

[Suba]

Many factors can influence a crypto bear market, such as government intervention, so that trading volume will be low or decrease, supply and demand circulation will not run smoothly.

 

[Goldynn89]

People take profits from their trades and that's the simplest explanation I've ever found. At the end of every long move, people will cash out their earnings and price reverses.

On a longer timeframe, like years or months this tends to have a more prolonged effect.