Investor Perception and Market Volatility during the Bear Trend of 2025

The financial markets during 2025 were subject to significant prolonged bear trend, which had a strong influence on investor attitude and market stability. This research focuses on the interaction between investor sentiment and market volatility, stressing the influence of behavioral biases including loss aversion, overreaction, and herding mentality. With the advent of electronic trading and social media, retail investors now increasingly depend on unconventional sources of information for decision-making, generating concerns regarding speculative activity and false information. Second, the study assesses the efficacy of regulatory measures, such as circuit breakers and investor education initiatives, in reducing panic sell-offs. Through an analysis of these dimensions, the research seeks to inform the enhancement of investor confidence and market resilience in bear markets.