Consumer confidence significantly impacts the financial markets for stocks, bonds, and cryptocurrencies. And confidence soars during bull markets, which occur when investment prices climb for extended periods of time. Investors are willing to acquire or hold stocks, owing to the booming economies and low unemployment that typically accompany bull markets, resulting in a buyer's market.

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Bear markets, on the other hand, are propelled by pessimism. Bear markets occur when stock prices decline 20% or more for an extended period of time. Bull markets are typically fueled by economic strength, whereas bear markets are more likely to develop during economic stagnation and rising unemployment. Rather than buying into the market, investors are looking to sell, preferring the safety of cash or fixed-income instruments.

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Markets are continuously fluctuating, as any experienced investor knows, and it is not always due to bear or bull markets. Small gains and losses can cancel each other out, resulting in flattened markets also. Furthermore, short-term trends or market corrections that cause downward movements may cause more major market shifts. Bull and bear markets exist for long periods of time; it is worth noting that the bulls have won over time, as we can see the crypto market repeatedly hitting higher lows.