Not sure about the definition of a bull vs bear market? You may have come across the term in passing or read in an article somewhere about a dreaded bear market, or about bull market brokers celebrating their gains.
It can seem slightly intimidating if you’re new to the Cryptosphere when you hear so many unfamiliar terms.
Beginners Crypto Guide is here to teach you all you need to know to get started. here we discuss the full definition and origin of bull and bear markets.
Bear Market Definition:
Well it’s not good…
A Bear market is a downward trend in the stock market value over a sustained period of time.
How long is the decline before being considered a bear market?
Markets can sometimes be referred to as bearish. This means that the stock market is showing a declining trend.
Individual commodities and assets like precious metals and food products such as coffee, corn, oats or wheat can be considered to be in a bear market too, these terms aren’t exclusive for the overall stock market or index like the Dow Jones or NASDAQ etc.
According to investopedia.com – if a market experiences a decline of 20% or more over a period of two months or longer, it is considered to be a bear market.
When was the longest Bear Market?
The longest and arguably worst bear market since records began occurred on Tuesday 29th October 1929, when the start of the Great Depression sparked America’s most famous bear market.
It lasted for 34 months as the S&P 500 fell 86% in less than 3 years. Click here if you’re interested in reading more about historic bear markets!
Bull Market Definition
If you haven’t guessed already, a bull market is a market trending in the opposite direction – going up.
How long does it take before being in a bull market?
As there is no specific metric to identify a bull market. The most common definition of a bull market is:
As this calculation is made over a sustained period of time, analysts often have difficulty predicting a bull market, typically only recognising it after it has happened.
Top 3 Longest Running Bull Markets Of All Time:
In Third Place, the 1949 post-World War II run that lasted just over 7 years!
In Second Place was a near-decade long run in the 90’s starting in October 1990. The market run lasted 113 months (9.4 years)
And in First Place was the most recent bull market which broke the decade-long record between 2009-2019. Following the economic crash in 2008, the market started to pick up shortly after and was trending positively for 127 months! (10.6 years)
Definition of a Bull vs Bear market: ORIGIN
As you understand the definition of a bull vs bear market, here’s a tip to help you remember which animal belongs to which market trend. It is also the reason why people refer to the terms bull vs bear market (or bullish and bearish).
The definition of the market trend is named after the direction the animal attacks!
A bull will thrust its horns up
A bear swipes its paws down
DISCLAIMER: This is NOT financial advice. Beginners Crypto Guide does NOT OFFER formal nor informal financial advice and accepts no liability for such service. You should always do your own research before making any financial decisions.