Bull Market - "A market in which share prices are rising, encouraging buying."
Bear Market - "A bear market is when a market experiences prolonged price declines."
First let me introduce myself - My name is Idan Abada and CEO and founder of Bitcoin Merch.
I started mining in 2015 and almost never stopped for 6 years in a row. At the time of writing, I'm mining using multiple different type of miners including ASIC and GPU miners.
So I have been mining during a BULL market and during a BEAR market.
Here is what I found interesting throughout those years of mining - BEAR market is the best time to mine cryptocurrency and hold it!
The reason is actually very simple - when the crypto market is down, allot of people get effected emotionally and ether sell their portfolio, trade the current coins to other coins, and even stop mining and sell their equipment for a low price for a quick sell.
Listen guys.... I have the same feeling when this happen to me, it's very hard to stay in while everyone is getting out. But because I have been doing this for so long, I just stay put and continue mining no matter what.
When you mine in a BEAR market, you usually MAKE LESS MONEY compared to what you are mining but YOU GET MORE COIN. This is very interesting and it makes sense. You have less competition for mining so YOU GET MORE COINS but you get less value, or money because the coin worth less.
In a Bull market, you mine less coin, but you get MORE VALUE or more money for your hashing power.
Depending on your mining equipment, the effect will be more extreme. For ASIC miners, that can only mine a specific algorithm, this can be more extreme up or down. Because ASIC can only mine one type of algorithms, you are locked to only specific coins you can mine - and your profit directly depends on the specific coin you are mining at the time.
GPU miners are a bit different, they still get effected by the market up or down, but a bit less than ASIC because they can run multiple type of algorithms. The resell value of GPU's also depends on the crypto market BUT it also get effected from the GAMING and supply chain. This means that even if crypto is down, your GPU might still have high value due to chip shortage, and supply chain issues.
One example can be the ASIC Kadena miner Goldshell KD5 which at one point on November 10th 2021 made $477 PER DAY! which caused the miner to spike it's price to $60,000 - $80,000 and might have even been sold for more. Once the price of the Kadena coin dropped, the price of the miner dramatically reduced.
This shows you that emotion and ROI play a huge rule in pricing of miners and how much they make. For me, I stick to the most old school known coins and mainly mine them. If I ever come across a different coin, I just keep it as it is and do my best to not touch it.
*This is not a financial advice, mining cryptocurrencies is risky.