ArticlesCryptocurrency

How Do Crypto Cycles Work?

💥 Crypto cycles are like the seasons of finance – winter, spring, summer, and fall… but with volatility instead of rain and memes instead of leaves.

What is a crypto cycle?
It’s a recurring pattern of rise and fall in the market, driven by macroeconomics, investor sentiment, news, tech innovation  and, of course, Bitcoin. If BTC sneezes, the altcoins catch the flu.

Main Phases of the Crypto Cycle:

1. Accumulation

Early spring vibes: it’s still dark, but the smart ones are planting.

Prices at the bottom. No public interest. Silence from the media. Whales and funds are buying.

Only the patient and savvy enter here.

2. Growth (Markup)

This is summer. Charts are blooming, portfolios turning green.

Bitcoin starts to rise steadily. Media and YouTube gurus jump in. Altcoins follow. ICOs, IDOs, NFTs, memes, and new trends begin.

FOMO (fear of missing out) kicks in and so do the newbies.

3. Peak / Euphoria (Distribution)

The hottest summer. It’s a heatwave. Everyone’s an “expert,” everyone’s an “investor.”

Stories pop up like “I invested $100 and became a millionaire.” Exchanges run flashy ads. Tokens pump, often with no reason. Some start taking profits.

If everyone believes “this time is different” – it’s time to think twice.

4. Decline (Markdown)

Crypto autumn → crypto winter.

Sharp dips. Panic, liquidations, scandals, bankruptcies. Interest disappears. Many leave the market “forever.”

Best time to learn and accumulate, but most can’t bear to look at their portfolio.

What triggers a new cycle?

  • Bitcoin halving (every ~4 years) – historically triggers growth.
  • Inflow of new money (ETFs, institutions, retail).
  • Macroeconomics (Fed rates, inflation).
  • Tech breakthroughs (new protocols, Layer-2s, DePIN, etc.).

How to use this knowledge?

Don’t buy in euphoria. Don’t sell in panic. Watch the halving dates. Study real projects,  not just TikToks.

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