Over $1 Billion in Liquidations Show Pain Hitting Crypto Bears

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Hughes’ framing leaves the timing open-ended, asking followers whether the crypto peak arrives “at the end of 2026 or even longer,” while implicitly suggesting bears may need a clearer, system-wide rollover in liquidity, not just slower momentum, before the macro backdrop decisively turns. Indicators include rising trading volume, improving macroeconomic conditions, positive regulatory news, and market sentiment shifts.

Crypto Bear Market Survival Guide: How to Protect Your Portfolio & Stay Sane for 2026 and Beyond

Both allow you to go long and profit when the price of an underlying asset rises or short and profit when it falls. Futures and options are the two most prevalent derivatives to hedge crypto trading positions. You can utilize crypto derivatives trading that will negate the losses of your crypto holdings. Short selling is the process of borrowing and instantly selling a cryptocurrency, only to buy it back at a lower price and return it to net a profit. Even though BTC is the primary market mover, it may not have the most explosive price surges.

The 20% drop is your first red flag, but crypto’s natural volatility means you need more confirmation. It’s when crypto values keep sliding downward for weeks, months, or even years. Find out what drives market downturns and when recovery could begin. One commenter pointed out that liquidity growth may be slowing and could peak soon. Traditional warning signs, such as long-term yield curve inversions, have failed to trigger major downturns so far. Central banks use tools such as forward guidance, yield curve control, and closer coordination with governments to reduce pepperstone canada the risk of recessions.

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Most cryptocurrencies do follow Bitcoin’s lead. Selling everything out of fear often leads to regret when the market recovers. If a coin has strong fundamentals and long-term value, holding—or even buying more—can be smarter than panic selling. If you act carefully, you can set yourself up for big gains in the next cycle. Even strong projects see price declines, and funding becomes harder to secure.

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Here are some proven methods to help you improve your investment strategies and survive a crypto bear market in 2025 and beyond. As 2026 progresses, the crypto market is increasingly shaped by macroeconomic conditions, institutional behavior, and liquidity dynamics, rather than fixed historical cycles. Elkaleh added that before price action alone confirms a deep bear market, several on-chain signals tend to emerge first.

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Always opt for a non-custodial wallet app or, better still, a tried-and-tested hardware wallet, like Trezor or Safepal, to have full control over your crypto stash. Billions of dollars would be wiped out from the market, causing many exchanges to end up insolvent. Your only options are to take your bitcoin off the exchange, or spend your life praying that fiaters who hold them don’t play fiat tricks Bitcoin has no central bank, thankfully, so nobody can steal others’ bitcoin to bail you and your exchange out when their fiat tricks blow up.

• BeInCrypto asked experts to outline which factors could realistically trigger or intensify an extreme crypto bear market in 2026.
• During this period, the market capitalization of tokens typically declines.
• This volatility reminds us that crypto markets are significantly shaped by external influences and investor sentiment—characteristics of an asset class that is still evolving.
• A bear market in crypto refers to a prolonged period of declining prices, typically characterized by a drop of 20% or more from recent highs.
• Many newcoming crypto investors enter during these surges, but the smart ones take profits along the way and manage risk.
• Federal Reserve, many investors have anticipated an impending bull market and all-time highs (ATH).
• Has something changed fundamentally in your long-term investment thesis?

These tend to be less volatile and more stable in bear markets. In a bear market, the main strategy is to hedge risks and adopt a defensive stance, which may trigger defensive portfolio adjustments. In 2018, cryptocurrency markets suffered a brutal sell-off following the ICO frenzy, with percentage declines reaching as much as 90% in some assets. Therefore, it is crucial to separate objective market conditions from emotional responses and to use trend exhaustion as an opportunity to buy assets at attractive prices.

Crypto analyst Matt Hughes says the global liquidity cycle is lasting much longer than usual, and that is why being consistently bearish on crypto has been costly since 2020. Cryptocurrency and other digital assets are highly speculative and involve significant risk, including the potential for complete loss of value. Cryptocurrency and other digital assets are highly speculative, involve significant risk, and may result in the complete loss of value. Some of those optimistic predictions have faded as ETH continues to underperform, strengthening the belief that a bear market is approaching. Currently, the ratio remains below the peak seen during the 2021 bull market, indicating that long-term Bitcoin holders are refraining from selling. These factors, among others, have led some participants to suggest that the market might be heading into a bear phase.

• These tend to be less volatile and more stable in bear markets.
• Actions like this suggest high conviction among long-term holders.
• You could lower your risk and promote your chances of long-term success by diversifying your investments among multiple assets.
• The decline has raised concerns that the market might be entering another long period of falling prices.
• Billions of dollars would be wiped out from the market, causing many exchanges to end up insolvent.

The best way to protect yourself from these market practices is to do your own research. It may be difficult to distinguish a shill from an unbiased post, but sometimes it’s pretty obvious. While we love crypto, there’s so much more out there than just blockchains.

Most cryptocurrencies lose 50–90% of their value. During this phase, selling pressure is high, confidence drops, and recoveries luno exchange review often fail. Even meme coins and NFTs often pump as risk appetite grows. Capital flows in from both retail and institutional investors. Duration depends on macro factors, halving cycles, and institutional adoption.

To prepare for a crypto bear market, start by assessing your portfolio. Terra Luna’s collapse caused the third bear market in crypto. In addition, crypto markets suffer when liquidity dries up, regulation remains weak, and the number of fraud cases increases. Upward momentum progressively forms as major buyers drive prices higher, establishing a new bull market.

His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field. Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Not everyone in the thread accepted the implication that the liquidity impulse remains cleanly supportive.

Crypto Bear Markets – A Detailed Analysis

Lastly, Puckrin described the past few months as a repricing phase, marked by long-term “OG” holders selling and institutions buying the excess. “I don’t think that 2026 will fit cleanly into a classic bull or bear narrative. As rate cuts stabilize the cost of capital, this consolidation could evolve into a more disciplined, sober bull phase later in 2026 rather than a speculative surge,” he stated. If not the four-year cycle, some analysts point to longer-term historical frameworks such as the Benner Cycle.

Sideways markets often precede a new trend, as major investors accumulate or distribute positions. During such periods, market capitalization tends to decrease amid deteriorating macroeconomic conditions in the financial markets. Understanding what drives a crypto bear trend and its fallout can help traders sidestep common mistakes and build an effective strategy. You’ll hear these terms across all sorts of markets. They describe not just price trends, but how people feel and act during different phases of a cycle. Track price trends, market sentiment, and macro signals.

Whales often build quietly during bears. hycm broker review Avoid revenge trading or doubling down on bad bets. Confidence fades, and influencers start calling crypto “dead” again. Traders and investors pull money out or park it in stablecoins. Recognizing this helps investors avoid panic and stay ready for recovery. Typically, they span an extended period of under a year to a year-and-a-half.

Pantera described 2025 as an exceptionally narrow market where only a small fraction of tokens generated positive returns. Exchanges can face liquidity issues, hacks, or even bankruptcy during downturns. For long-term storage, self-custody is considered safer. Every major downturn sparks headlines and discussions about the “end of crypto.” Yet historically, after every winter has come a spring.