Cryptocurrency: Understanding Market Cycles
In recent years, the cryptocurrency world in recent years, and prices have grown quickly and crashed. Although some investors attracted astronomical phrases, many others lost a significant amount of bad weather and poorly informed decisions. In this article, we will go into the cryptocurrency market cycle in the world and check what they mean for investors.
What is the market cycle?
The market cycle refers to natural fluctuations that occur in each financial market over time. These cycles can be influenced by various factors, such as interest rates, economic indicators, technological progress and global events. In the case of cryptocurrency markets, several key players are forming a trend:
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Central Bank : Central banks are responsible for determining a monetary policy, which can have a significant impact on cryptocurrency prices.
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Global economic trends : Global economic indicators, such as GDP growth rates, inflation levels and trade residues, can affect cryptocurrency prices.
5-10 year old market cycle
Cryptocurrency markets correspond to the natural cycle covering five to ten years. This cycle consists of three phases:
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Maximum (0-3 year) : A strong upward trend of cryptocurrency price, often powered by increased acceptance and recognition of generally acceptance.
- CORRITO (-3 to -5) : Inheritance trend when investors are becoming more cautious and prices are reduced due to negative reports, legislation or economic slowdown.
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Annual Market Cycle
The annual market cycle is influenced by short -term economic indicators, such as GDP growth rates, inflation levels and employment levels. This cycle consists of three phases:
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Peak (Q1 2020) : A strong upward trend at the price of cryptocurrencies powered by increased general acceptance and recognition.
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6-12-month-long market cycle
The market cycle is affected by long -term macroeconomic trends, such as changes in interest rates, economic indicators and global events. This cycle consists of three phases:
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Peak (Q3-Q4 2019) : A strong upward trend at the price of cryptocurrencies powered by increased adoption and comprehensive recognition.
- CORRITO (Q1-Q2 2020) : Inheritance trend as investors are getting more cautious and prices are falling due to negative reports and economic problems.
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Market Cycle 24-36 months
The market cycle is affected by long -term macroeconomic trends for two to three years, such as changes in interest rates, economic indicators and global events. This cycle consists of three phases:
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Peak (Q3-Q4 2020) : A strong upward trend at the price of cryptocurrencies powered by increased acceptance and comprehensive recognition.
- CORRITO (Q1-Q2 2021) : Inheritance trend where investors are becoming more cautious and prices are reduced due to negative messages and economic problems.
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What can investors do?
Understanding market cycles is very important to make deliberate investment decisions in the cryptocurrency space.
