Bull vs. Bear Markets in Crypto: Understanding Trends in 2025

Booming and busting alternates in seconds in the crypto market. A bull market means prices are climbing, confidence is high, and everybody tends to purchase. A bear market, in contrast, is when the prices drop, there is panic, and people begin liquidating their assets.

Since understanding the status of the market at any given time can greatly change the investment decisions one takes. Knowing about these risks is not only important, but mandatory. If your intent is to expand or protect your portfolio, understanding cycles and timing along with strategic risk management becomes a necessity.

You will explore how to capitalize on bear gaps, stabilize during bull runs, and leverage the full support of Bitget Wallet making your transitions seamless. With its secure, intuitive interface catered to newcomers, you feel instinctively more in command regardless of market volatility. 

Key Takeaways

• Market Cycles Are Important: Bull markets are periods of increased prices and positive sentiment, whereas bear markets are periods of decreased prices and negative sentiment. Knowing the cycles assists in determining when to invest and reduces the risk.

• Clever Investing Tactics: In bull markets, invest early and enjoy the profits. While in bear markets, wait out the drought by utilizing dollar-cost averaging with quality assets.

• Protect Yourself with a Bitget Wallet: Self-custody on Bitget Wallet shields you from scams, exchange collapses, and market volatility which secures you regardless of market condition.

• Crypto Cycles Are Driven By Sentiment: Movement in the market is driven by the sentiment of traders (bulls are driven by FOMO, while bears are driven by fear) and external economic forces hence staying informed is the key to success in both.

What Are Bull and Bear Markets in Crypto?

Bull and bear markets are the heartbeat of the crypto environment, reflecting boom and bust cycles. They're shaped by price action, investor psychology, and externalities. Let's dig into what they are.

What Is a Bull Market in Crypto?

A bull market in crypto is a sustained period of rising prices, where optimism fuels a buying frenzy. Imagine a bull charging forward, lifting prices with its horns. Three key features stand out:

• Rising prices: Major cryptocurrencies like Bitcoin and Ethereum see consistent gains, often by double-digit percentages weekly.

• Investor optimism: FOMO (fear of missing out) draws in retail and institutional investors, amplifying demand.

• Demand > supply: More buyers than sellers push prices higher, creating a self-reinforcing cycle.

A classic example is the 2020–2021 Bitcoin bull run. Bitcoin soared from $10,000 in late 2020 to over $69,000 by November 2021, driven by institutional adoption (e.g., Tesla’s $1.5 billion BTC purchase) and retail hype on platforms like X. Altcoins like Ethereum and Solana also exploded, with ETH hitting $4,800. The energy was electric—everyone wanted a piece of the action.

Source: Research Gate

 

What Is a Bear Market in Crypto?

A bear market in crypto is a prolonged period of declining prices, where fear and uncertainty take over. Picture a bear swiping downward, dragging prices with it. Three defining traits include:

• Falling prices: Major coins drop 20% or more from recent highs, often entering a downward spiral.

• Investor fear: Panic selling dominates as confidence evaporates, with many investors exiting the market entirely.

• Supply > demand: Sellers outnumber buyers, flooding the market with coins and driving prices lower.

The crypto winter of 2022 is a harsh reminder. Bitcoin crashed from its $69,000 highs to under $17,000, a 75% decline. The collapse of TerraUSD ($40 billion in losses) and FTX exchange ($8 billion in customer funds lost) destroyed market confidence. Altcoins like Solana and Cardano crashed 80–90% in value, and sentiment on X turned grim, with threads calling for "the end of crypto." It 2025 could see such swings depending on macro circumstances.

 

Read more: What Is a Bear Market in Crypto? How Long Will It Last in the 2025 Crypto Downturn?

Latest BTC/ETH Charts:

• Bitcoin (May 2025): Hovering around $62,000 after a volatile Q1, with analysts eyeing a potential breakout if ETF inflows resume.

• Ethereum: Trading near $2,400, with upgrades like Ethereum 2.0’s scaling solutions fueling cautious optimism.

 

Why Do Bull and Bear Markets Happen?

Crypto market cycles are not randomness in chaos—there's a mix of economic facts and psychological forces involved. Understanding the forces enables you to prepare for change and make informed decisions.

1. Economic Factors

Global and crypto-specific events shape market trends:

• Macro events:

• Interest rates:
  When central banks like the Federal Reserve raise rates (i.e., rate hikes in 2022 to curb inflation), lending becomes more expensive, lowering speculative wagers like crypto.

• Inflation:
  Rising inflation erodes purchasing power, motivating investors towards safe-haven assets like gold over risky ones like crypto.

• Regulations:
  Suppressions (i.e., China's 2021 crypto ban) create bear markets, while pro-crypto policies (i.e., El Salvador's adoption of Bitcoin) create bulls.

• Crypto-specific triggers:

• Bitcoin halving:
  Occurring every four years (next in 2028), halvings cut mining rewards, reducing BTC supply and historically triggering bull runs.

• Exchange failures:
  The FTX collapse in 2022 and Bybit’s $1.5 billion hack in February 2025 shook confidence, fueling sell-offs.

• ETF approvals: Spot Bitcoin ETFs approved in 2024 attracted billions in institutional capital, sparking rallies.

2. Investor Sentiment

Emotions amplify market swings:

• FOMO in bull markets:
  With rising prices, there's fear of missing out and irrational buying. In 2021, X was filled with "$100K Bitcoin" and "DOGE to the moon" posts that draw in new buyers.

• Bear market panic selling:
  Sinking prices generate fear, triggering mass sell-offs. In 2022, X was filled with "crypto is dead" tales, making it worse.

• Amplification:
  Influencers, media outlets, and social media get people excited. A single tweet by Elon Musk in 2021 sent Dogecoin soaring 40% in a few hours; adverse publicity in 2022 fueled crashes.

 

How to Invest in a Crypto Bull Market?

Bull markets are thrilling but risky. Here’s how to ride the wave with crypto bull market strategies while avoiding costly errors.

Buying Early & Riding Momentum

Timing is everything in a bull market:

• Spot early signals:

• Technical indicators:
  Bitcoin breaking its 200-day moving average or RSI (Relative Strength Index) showing bullish divergence.

• Market catalysts:
  Watch for halving events, ETF launches, or major adoptions (e.g., PayPal integrating crypto in 2020).

• Research trending coins:
  Use Bitget Wallet’s market tracker to spot rising altcoins, but stick to projects with strong fundamentals (e.g., Ethereum, Solana).

• Avoid late-entry traps:
  Buying at all-time highs due to hype often leads to losses. In 2021, latecomers bought SHIB at its peak, only to lose 70% when the market turned.

Taking Profits Without Missing Upside

Locking in gains while staying in the game requires discipline:

• Set sell targets:
  Plan to sell portions (e.g., 20% at 2x, 30% at 3x) to secure profits. For example, selling 25% of a $10,000 Bitcoin position at $20,000 banks $5,000 while keeping exposure.

• Use trailing stop-loss orders:
  These sell automatically if prices drop by a set percentage (e.g., 10%), protecting gains during sudden dips.

• Reinvest wisely: Move profits into stablecoins or blue-chip coins to diversify risk while staying in the market.

How to Invest in a Crypto Bear Market?

Bear markets test your resilience, but they’re also where fortunes are built. Here’s how to invest in a crypto bear market with caution and opportunity in mind.

1. Buying the Dip (but Not Too Early)

Low prices scream “bargain,” but mistiming can hurt:

• Gauging the bottom:

• Technical signals:
  Look for Bitcoin stabilizing above its 200-week moving average or reduced selling volume on exchanges.

• Sentiment shift:
  Monitor X for signs of capitulation (e.g., “crypto is over” posts often mark bottoms).

• Dollar-cost averaging (DCA):
  Invest fixed amounts regularly (e.g., $200 monthly into Bitcoin) to spread risk. In 2022, DCA investors who bought Bitcoin at $20,000 averaged better returns when it rebounded to $30,000.

• Focus on quality:
  Stick to blue-chip coins like Bitcoin and Ethereum, which historically recover faster than speculative altcoins.

Psychological challenge:
Buying during a bear market feels like catching a falling knife. Fear of further losses can paralyze you. Counter this by setting a clear budget and sticking to it, ignoring short-term noise.

2. Defensive Strategies

Protect your portfolio with these moves:

• Shift to stablecoins:
  Park funds in USDT or USDC to preserve capital during volatility. In 2022, investors who moved to stablecoins avoided 50%+ losses.

• Blue-chip focus:
  Bitcoin and Ethereum have weathered every bear market since 2011. They’re safer bets than unproven altcoins.

• Hedging:
  Use futures or options to bet against price drops (advanced strategy; seek expert advice).

• Short selling:
  Borrow crypto, sell it at a high price, and buy it back cheaper to profit from declines. (Warning: High risk for beginners due to unlimited loss potential.)

Read more:
How to Protect Your Crypto Assets During a Bear Market?
Top 8 Investing Strategies for a Crypto Bear Market in 2025

Why You Need a Secure Crypto Wallet in Any Market?

Whether the market’s soaring or crashing, a secure wallet is your fortress. Centralized exchanges are convenient but vulnerable, making self-custody via a wallet like Bitget Wallet essential.

Risks During Bull Markets

Bull markets attract predators:

In 2021, phishing scams and fake giveaways surged, stealing $3.7 billion in crypto, while exchange outages, like the 2024 hack that locked users out during a 20% Bitcoin rally, highlight the risks of not controlling your private keys. Using a wallet like Bitget Wallet ensures you own your crypto, protecting you from scams and exchange vulnerabilities in any market.

Risks During Bear Markets

Bear markets expose systemic weaknesses:

The FTX collapse ($8 billion lost in 2022) and Bybit hack (2025) exposed exchange risks, with panicked sell-offs causing withdrawal delays. Bitget Wallet’s self-custody protects your funds from failing platforms and market chaos. 

How Bitget Wallet Helps You Navigate Bull and Bear Markets?

Bitget Wallet is your Swiss Army knife for 2025’s crypto market trends. Its security, speed, and features make it indispensable for beginners and pros alike.

In a Bull Market

• Seamless token access:
  Trade trending tokens across 60+ blockchains (Bitcoin, Ethereum, Solana, and more) without missing hot opportunities. Bitget Wallet’s market tracker highlights rising coins in real time.

• Lightning-fast transactions:
  Low fees and instant confirmations let you buy during price surges. In 2024, users swapped tokens in seconds to catch a 5x altcoin pump.

• Portfolio management:
  Monitor holdings and profits with a sleek interface, helping you decide when to take gains.

In a Bear Market

• Ironclad security:
  EAL6+ certified hardware and offline private keys protect your assets, even if exchanges collapse. 

• Portfolio tracking:
  Built-in tools analyze market trends and your holdings, helping you spot recovery signals or rebalance defensively.

• Multi-chain support:
  Store Bitcoin, Ethereum, and stablecoins in one place, simplifying diversification during downturns.

Final Thoughts

Cycles in the cryptocurrency markets do occur—bull markets experience euphoria, bear markets demand fortitude. But with the right knowledge, tactics, and tools, you can make money in both. In bull markets, invest early, take profits, and FOMO less. In bear markets, employ dollar-cost averaging, play defense, and keep a cool head. Most importantly, secure your assets with a solid wallet to weather any tempest.

Bitget Wallet is your best companion in the 2025 crypto trends. Equipped with its state-of-the-art security, multi-chain system, and real-time function, it's the top choice wallet for smart investors. Bitget Wallet stands by your side if you are reaping bull market benefits or protecting assets in a bear market. 

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FAQs

1. What is the difference between a bull market and a bear market in crypto?

A bull market in crypto refers to a period where prices rise consistently, investor confidence is high, and demand outweighs supply. In contrast, a bear market is marked by falling prices, negative sentiment, and widespread selling. Understanding the crypto market cycle helps investors make informed decisions and reduce risk exposure.

2. How do I invest in crypto during a bear market?

To invest during a crypto bear market, consider dollar-cost averaging into quality assets like Bitcoin and Ethereum, monitor market sentiment for signs of bottoming, and stay cautious with new altcoins. Protecting capital by shifting into stablecoins and using secure wallets like Bitget Wallet is also crucial to avoid losses from exchange failures.

3. Why is Bitget Wallet important in bull and bear markets?

Bitget Wallet ensures asset security and full control in all market conditions. During bull markets, it provides fast access to trending tokens and real-time tracking. In bear markets, its self-custody features protect against hacks and collapses like FTX, making it a reliable tool for both growth and preservation.

Risk Disclosure

Please be aware that cryptocurrency trading involves high market risk. Bitget Wallet is not responsible for any trading losses incurred. Always perform your own research and trade responsibly.