What typically initiates the lack of buying interest in a bear market?

In a bear market, a prevailing sense of pessimism among investors plays a critical role in initiating a lack of buying interest. Investors feel uncertain about the future economic conditions, which often leads them to avoid making new investments. In such an environment, negative sentiment can be fueled by a variety of factors, such as declining stock prices, poor corporate earnings reports, or broader economic concerns. This pessimism causes investors to anticipate further declines in market value or economy, prompting them to hold onto their cash rather than enter the market, thus contributing to a pronounced lack of buying interest.

This psychological barrier is significant because even if some indicators or news are not overtly negative, the prevailing negative sentiment can overshadow these factors. The mindset of "waiting for a bottom" becomes prevalent, as investors are often reluctant to commit capital in a declining market, leading to a self-reinforcing cycle of low buying interest and continued price drops.