Market Cycle
The recurring pattern of bull markets (rising prices) and bear markets (falling prices) in crypto.
Explained Simply
Crypto markets move in cycles, historically driven by Bitcoin halvings. A typical cycle includes accumulation (smart money buys quietly), markup (prices rise, FOMO builds), distribution (early investors sell to newcomers), and markdown (prices crash, fear dominates). Bitcoin cycles have historically lasted about four years, though past patterns don't guarantee future behavior. Understanding where you are in the cycle helps set realistic expectations and avoid buying at peaks or panic-selling at bottoms.
Example
The 2020-2021 bull market saw Bitcoin rise from $10,000 to $69,000, followed by a bear market that dropped it to $15,500 in late 2022.
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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.