A downtrend in the cryptocurrency industry means that the prices of a cryptocurrency in general or a specific cryptocurrency are declining over a certain period. It means that high price peaks that may have been reached in the past are replaced by lower peaks and the overall price trend is downward.
During a downtrend, investors and traders may face potential losses or losses as the value of their cryptocurrency assets declines. However, some traders may try to capitalize on a downtrend by selling assets at the price peak and buying at a lower level to profit from subsequent price increases.
A downtrend can be caused by various factors, including lack of investor interest, negative news about a cryptocurrency or the market in general, conditions after a rapid growth period, and changes in the economic or regulatory environment.