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What is market cycle?

Definition

A market cycle is the repeating pattern of expansion, peak, contraction and bottom that crypto markets have moved through several times.

Crypto cycles have historically included long rallies followed by drawdowns of 70% or more. Many investors buy near the top, when the move is obvious and headlines are loud, then hold through the decline with no plan.

Understanding where the market may be in its cycle helps with allocation and exposure, but no one times cycles perfectly. A process that works in both directions matters more than predicting the turn. See bidirectional exposure.

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General education only. Not financial advice.