The Psychology of Holding Bitcoin Through Bear Markets

[Olatundespo]

Many people usually say they have a strong belief in Bitcoin especially when the market is in a bullish momentum. That belief stops when the bear market arrives, that is where their great test begins. Because when price falls, their portfolio that was once greenie and healthy before has turned red and fear begins to replace optimism. So at that stage investing itself becomes less about Bitcoin and more about their psychology.
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‎ One of the reasons why people panic in the bear market is because of high expectations. Whereby the only thing that goes through their mind is that Bitcoin will always keep rising without keeping in mind that it can also dip. So when that dip finally happens, they begin to doubt their decisions. Instead of them keeping their head straight and focus on  why they invested in Bitcoin in the first place, they become trapped and consumed by short term moves.
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If you cannot grasp the psychological logic, then you have not yet been able to read yourself. Have you ever wondered why you feel psychological pressure when the market price falls and when the price rises, you feel excited for sell ? The mindset you have developed depends on the preparation you have taken and you are affected positively or negatively.

Suppose you are still new to investing and your aim is to make a short term profit, so you may have bought Bitcoin. If the price suddenly starts falling, you are afraid of losing your capital, if the price increases, you feel happy and prepare to sell. This is a kind of mentality.

But if you are accumulation Bitcoin in a long term strategy, that specific period becomes important for you, that is the plan you had at the beginning of the investment is for a period of 4-10 years or more. During this period the price decrease or increase will not be able to hinder the regular accumulation of Bitcoin because your mindset will drag you until that specific period.

So literally mindset is the manifestation of your inner readiness.

[MusaMohamed]

Especially if the Bitcoin price is already down about 70% or 75% from its all time high in the bull market. Bitcoin price has yet been down 75% from all time high but if there will be such price and price correction in the coming months, there is no reason to sell bitcoins at that time.

We are not yet down though from 70% or higher from our last previous all time high in October 2025. So previous all time high is ~$126,000, and we are currently at around $63,000–$64,000. So are just around 50% from it.

I knew about that, like where Bitcoin market is now and how many percent it fell down from ATH but in my post, I only said that if Bitcoin falls more to -70% to -75% from ATH, let's hold. There is no reason to sell your bitcoin at that time if it actually comes because holding many months strongly till that time and that price to panic sell is insane.

That's why there are still a lot of us who say that we haven't seen the bottom yet. And so it could be around $35,000-$37,500 if we hit around 70%-75% lowest low for this bear market.

I don't know honestly and I only accumulate Bitcoin in this bear market. Even I feel bottom is not here but I believe it is already very close but I don't find the market bottom, just accumulating till a day bottom is in, get confirmed with a market recovery from bottom and I will be able to enjoy as well as harvest good investment results from months of accumulation patiently and holding strongly.

[Zigabel]

A good number of my post about Bitcoin has never failed to emphasise the need to understanding the dynamics of Bitcoin and building a strong psychology in that perspective,  people seem to be in a hurry and skip all of that, that is why they get into Bitcoin and probably have to learn while they are already invested,  in most cases,  learning at this time eventually cost them because  they are already influenced by their emotions and they have little to almost no control of their reactions when the emotions are up there.

It is always best to pay attention to understanding the dynamics of Bitcoin,  this includes its cycle,  its psychology and possible events that could influence its movements,  all of this will help you position better as an investor.  So you do not have to get emotional about it and make moves that easily goes against you,  neither do you get to panic at every happenings you see in the market anytime.

[Bright0515]

Every investor has a different strategy because their financial capabilities are different. If you look at other successful investors and decide on a strategy based on that, it will probably not be fruitful. A bear market is usually a good time to buy, but for some investors it will be scary because the value of the holdings in their portfolio will decrease. But during a price increase, many new investors do not want to buy because they expect more declines.

The truth is that we can't understand the movement of Bitcoin completely because it's volatile. Although we can speculate, it's difficult to predict the actual price it will be in the future, and I believe that's one of the reasons why most people quickly sell whenever there's a decline in the price, as they are likely short term investors. Well, you are right because clearly everyone follows a specific strategy that works well for them.
Honestly, all long term investors even prefer to buy Bitcoin during the bear market so that they can literally accumulate more Bitcoin before Bitcoin start gaining value in no time.

[o48o]

Many people usually say they have a strong belief in Bitcoin especially when the market is in a bullish momentum. That belief stops when the bear market arrives, that is where their great test begins. Because when price falls, their portfolio that was once greenie and healthy before has turned red and fear begins to replace optimism. So at that stage investing itself becomes less about Bitcoin and more about their psychology.
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If you invest because of the hopes of bull market, it's always been less because of bitcoin and more because of greed.

Also people seem to fool themselves by dividing their mind to this dualistic view, where there are 2 opposites, logical vs emotion. But here's the thing: there's no such thing as emotionless decision. Emotions are spark behind our thinking process and core behind decisions. I wouldn't even be a decision if it's out of your hands because it's based on something "factual". At least that's what current consensus is on psychology.

[LUCKMCFLY]

It is always best to pay attention to understanding the dynamics of Bitcoin,  this includes its cycle,  its psychology and possible events that could influence its movements,  all of this will help you position better as an investor.  So you do not have to get emotional about it and make moves that easily goes against you,  neither do you get to panic at every happenings you see in the market anytime.

Yes, there's no doubt about it, investors should always monitor the price of BTC. In this respect, investors shouldn't just stick to the HODL strategy, which isn't bad, but I think the correct approach is HODL + DCA + buying on dips. For me, this is the most comprehensive strategy an investor can adopt.

In investor books, they explain that their research to determine the best stock takes a considerable amount of time to decipher before they can start investing in the right one.

In the crypto market, we know that the right stock/coin is BTC. Just imagine having the discipline to invest consistently and actively for 8-10 years; the results will be out of this world, with guaranteed huge profits.

[Joeboy]

A good number of my post about Bitcoin has never failed to emphasise the need to understanding the dynamics of Bitcoin and building a strong psychology in that perspective,  people seem to be in a hurry and skip all of that, that is why they get into Bitcoin and probably have to learn while they are already invested,  in most cases,  learning at this time eventually cost them because  they are already influenced by their emotions and they have little to almost no control of their reactions when the emotions are up there.

It is always best to pay attention to understanding the dynamics of Bitcoin,  this includes its cycle,  its psychology and possible events that could influence its movements,  all of this will help you position better as an investor.  So you do not have to get emotional about it and make moves that easily goes against you,  neither do you get to panic at every happenings you see in the market anytime.

Indirectly, you seem to be encouraging the idea of folks first waiting to obtain knowledge before kickstarting their Bitcoin accumulation journey(unless I got you wrong.. If I did, my bad)... Not that I am in support of waiting to learn, but then again everyone is entitled to adopt whatever strategy they feel is gonna be best for them... Understanding the dynamics of BITCOIN could probably take months, if not even years before fully grasping all there is to know... And wasting that so much time just seem like time wastage.. Mistakes are very much normal with newbies, infact it is through this mistakes that they can learn and then make improvements... That's the more reason why it is best they kickstart their accumulation journey with tiny amounts that they know for sure that they can afford to lose in case any mistake occurs... After spending years learning Bitcoin, that doesn't still make you to be immune to mistakes, surely you will still make some mistakes at some point...
Personally I believe that Bitcoin is best learn through experience.. And so it is best that folks start and learn as they go... You best understand volatility by actually experiencing it...

[cxtreenal]

Every investor has a different strategy because their financial capabilities are different. If you look at other successful investors and decide on a strategy based on that, it will probably not be fruitful. A bear market is usually a good time to buy, but for some investors it will be scary because the value of the holdings in their portfolio will decrease. But during a price increase, many new investors do not want to buy because they expect more declines.

The truth is that we can't understand the movement of Bitcoin completely because it's volatile. Although we can speculate, it's difficult to predict the actual price it will be in the future, and I believe that's one of the reasons why most people quickly sell whenever there's a decline in the price, as they are likely short term investors. Well, you are right because clearly everyone follows a specific strategy that works well for them.
Honestly, all long term investors even prefer to buy Bitcoin during the bear market so that they can literally accumulate more Bitcoin before Bitcoin start gaining value in no time.

It is not easy to predict the price of Bitcoin but I personally believe that the price of this digital asset will skyrocket in the future. Many investors like me probably have the same attitude. The price is temporarily volatile but for a long-term investor, this volatile period is an opportunity. This opportunity is to accumulate Bitcoin regularly. When the price of Bitcoin falls, there is an advantage of getting a larger amount of Bitcoin fractionally through a smaller amount of funds. The price is volatile but the best way is to accumulate Bitcoin in the DCA method regardless of the price.

Consider time valuable for holding Bitcoin and continue accumulating Bitcoin during every period of volatility. If you wait for the price to fall, you will fall behind in your investment. Take advantage of the price drop before the price skyrockets and accumulate Bitcoin in the DCA method regularly.

[hyudien]

Indirectly, you seem to be encouraging the idea of folks first waiting to obtain knowledge before kickstarting their Bitcoin accumulation journey(unless I got you wrong.. If I did, my bad)... Not that I am in support of waiting to learn, but then again everyone is entitled to adopt whatever strategy they feel is gonna be best for them... Understanding the dynamics of BITCOIN could probably take months, if not even years before fully grasping all there is to know... And wasting that so much time just seem like time wastage.. Mistakes are very much normal with newbies, infact it is through this mistakes that they can learn and then make improvements... That's the more reason why it is best they kickstart their accumulation journey with tiny amounts that they know for sure that they can afford to lose in case any mistake occurs... After spending years learning Bitcoin, that doesn't still make you to be immune to mistakes, surely you will still make some mistakes at some point...
Personally I believe that Bitcoin is best learn through experience.. And so it is best that folks start and learn as they go... You best understand volatility by actually experiencing it...

I agree with what you are saying, like the sentence I once read "not learn first, then invest, but learn while investing responsibly", and the key to being successful in investing in bitcoin set a stance to place that investment for the long term, I always simplify if investing in bitcoin is to assume I am saving, this mindset helps me stay patient, consistent, and avoid making emotional decisions based on short-term price fluctuations.

[Soldroplet]

[Edited Out]

I agree with what you are saying, like the sentence I once read "not learn first, then invest, but learn while investing responsibly", and the key to being successful in investing in bitcoin set a stance to place that investment for the long term, I always simplify if investing in bitcoin is to assume I am saving, this mindset helps me stay patient, consistent, and avoid making emotional decisions based on short-term price fluctuations.

I agree with you, it seems more realistic to me that when a person starts investing and learning along with saving Bitcoin, it is more realistic. If an investor wants to start investing after knowing everything about Bitcoin, that investor can fall behind a lot. Yes, an investor can learn while investing. However, along with learning, it is important to consider one's financial capacity, cash flow management, and risk-taking ability. Because Bitcoin never stays in its place but keeps decreasing or increasing.
If a person in Bitcoin sees Bitcoin not only as profit but also as long-term savings, the mental stress also decreases a lot. Then, excessive thoughts do not come to mind due to short-term price fluctuations, so it is possible to focus on continuously saving Bitcoin. Investing in Bitcoin should be done in such a way that one does not have to sell Bitcoin in an emergency.

[obuoma]

I agree with what you are saying, like the sentence I once read "not learn first, then invest, but learn while investing responsibly", and the key to being successful in investing in bitcoin set a stance to place that investment for the long term, I always simplify if investing in bitcoin is to assume I am saving, this mindset helps me stay patient, consistent, and avoid making emotional decisions based on short-term price fluctuations.

If a person in Bitcoin sees Bitcoin not only as profit but also as long-term savings, the mental stress also decreases a lot. Then, excessive thoughts do not come to mind due to short-term price fluctuations, so it is possible to focus on continuously saving Bitcoin. Investing in Bitcoin should be done in such a way that one does not have to sell Bitcoin in an emergency.

This idea of saving in Bitcoin is what many people do not see as the advantage of buying Bitcoin and that is rather unfortunate. People are too fixated on the profits that they forget that beside the profits, Bitcoin presents a wonderful alternative to saving in fiat in terms of inflation. Rather than keeping money in the bank where inflation makes it reduce its value, Bitcoin is better. I even prefer holding my money in Bitcoin to investments like fixed deposits and buying treasury bills.

[cocadalcan]

I agree with what you are saying, like the sentence I once read "not learn first, then invest, but learn while investing responsibly", and the key to being successful in investing in bitcoin set a stance to place that investment for the long term, I always simplify if investing in bitcoin is to assume I am saving, this mindset helps me stay patient, consistent, and avoid making emotional decisions based on short-term price fluctuations.

If a person in Bitcoin sees Bitcoin not only as profit but also as long-term savings, the mental stress also decreases a lot. Then, excessive thoughts do not come to mind due to short-term price fluctuations, so it is possible to focus on continuously saving Bitcoin. Investing in Bitcoin should be done in such a way that one does not have to sell Bitcoin in an emergency.

This idea of saving in Bitcoin is what many people do not see as the advantage of buying Bitcoin and that is rather unfortunate. People are too fixated on the profits that they forget that beside the profits, Bitcoin presents a wonderful alternative to saving in fiat in terms of inflation. Rather than keeping money in the bank where inflation makes it reduce its value, Bitcoin is better. I even prefer holding my money in Bitcoin to investments like fixed deposits and buying treasury bills.

Nowadays, most of the people who are aware of the negative effects of fiat currency will not make the mistake of buying fixed deposits and treasury bills. Even if they know about the harmful effects of inflation, no one will keep excess fiat deposits and will not consider keeping it in the bank as safe. Cash funds are needed due to daily needs, but remember that smart people buy Bitcoin through discretionary income because they know that inflation devalues ​​the funds stored in the bank.

Let me clarify a little more, suppose you have a fund of $5k today and you keep it in the bank in the form of fixed deposit. After 5 years, the bank gives you a 5% deposit bonus against this amount of fund. Consider for yourself whether it will be a profit or a loss for you. The amount of goods that you can buy with this amount of fund at present, you will not be able to buy half the amount of goods after 5 years, which means that this cash fund starts devaluing due to the effect of inflation.

On the other hand, if you were to accumulate Bitcoin every week and build up a holding, the chances of getting a return from this holding would be much higher and the amount of return would be much higher than the capital.

[bbigtart]

What your own take on this? what do you guys feel people need to do to survive and hold during this bearish condition?

To be able to maintain our position when facing bearish conditions, it’s of course by strengthening a strong mindset. We need to have a strong belief in bitcoin as a long-term asset, an asset with solid fundamentals, so that no matter what happens in the market, we stay firm on our goals. In fact, having a strong mindset about bitcoin actually helps us prepare reserve capital for DCA if prices keep dropping. 

In essence, to build a strong mindset toward bitcoin we have to understand the cycles and market dynamics. It can be said that shaping your mindset or psychology is more important than learning while investing because emotions usually end up controlling decisions that lead to losses. So by preparing mentally, managing risk strictly, and keeping your psychology stable first that’s what determines whether you can survive in a bearish market.

[Jaycoinz]

This idea of saving in Bitcoin is what many people do not see as the advantage of buying Bitcoin and that is rather unfortunate. People are too fixated on the profits that they forget that, besides the profits, Bitcoin presents a wonderful alternative to saving in fiat in terms of inflation. Rather than keeping money in the bank where inflation makes it reduce its value, Bitcoin is better. I even prefer holding my money in Bitcoin to investments like fixed deposits and buying treasury bills.

With some of the recent occurrences that have hit the Bitcoin space, alot of people will have, if not even lose faith in the use of it as storage means of storage against inflation, I mean just take a look at the recent event that occurred with self-custody company that got hacked and so many people that used Bitcoin for that purpose of saving against inflation and even for profit have lost so much and the crazy part of it is that there would be absolutely no one to hold for such even and many people would prefer the other way around where they would have atleast some one to hold responsible just incase such event occurs.

[GeorgeJohn]

This idea of saving in Bitcoin is what many people do not see as the advantage of buying Bitcoin and that is rather unfortunate. People are too fixated on the profits that they forget that beside the profits, Bitcoin presents a wonderful alternative to saving in fiat in terms of inflation. Rather than keeping money in the bank where inflation makes it reduce its value, Bitcoin is better. I even prefer holding my money in Bitcoin to investments like fixed deposits and buying treasury bills.

Bitcoin investment is good, when you invest with a discretionary income, especially when you wants to invest in bitcoin for long-term..i believe that most of the investors who invested in Bitcoin have different purposes of investing..at first they invest due to bitcoin doesn't have a third-party after you have invested...so that's why you don't need to use all your capital for the investment...We should also concentrate for the advantages and disadvantages that's involve for the investment...sometimes the disadvantages of bitcoin almost get higher than the advantages if not we'll planned the investment of Bitcoin properly..it doesn’t mean that bitcoin investment always yield profit.

[Issa56]

‎ One of the reasons why people panic in the bear market is because of high expectations. Whereby the only thing that goes through their mind is that Bitcoin will always keep rising without keeping in mind that it can also dip. So when that dip finally happens, they begin to doubt their decisions. Instead of them keeping their head straight and focus on  why they invested in Bitcoin in the first place, they become trapped and consumed by short term moves.

That’s why I do say lots of people investing in bitcoin don’t have proper understanding about bitcoin before they put their money in it. If you properly understand bitcoin, you should know that bitcoin price cant just keep on increasing, it’s not possible, at some point the price is just going to dump, and what you should do as at that moment is just for you to keep on holding your bitcoin, you have no reason to panic in a situation like this because bitcoin price is just going to bounce back if you can keep on holding.

When their is a dip in the market, you are not suppose to panic because the value of the coin is the only thing which is going to change, the amount of coin which you are holding is going to remain the same, so we shouldn’t even panic and sell whenever their is dip in the market. If you are always scared whenever you see your money drop, just make sure you don’t even check the wallet which you have the coin inside.

‎ Investors who took their time in understanding Bitcoin while they were investing are often less shaken by volatility. Because they've understood that the bear market has been part of the Bitcoin cycles, which is normal.

Whenever their is bear in the market, I don’t even check my wallet like that, I don’t want to see how low my money have gone at that moment, but I know it’s just going to bounce back, so am not always worried. Have experienced bear market before, so it’s not something that’s new to me.