Market cycle (bull and bear market)
Crypto markets move in pronounced cycles: phases of strong gains ("bull market") alternate with long declines ("bear market" or "crypto winter").
Explained simply
All markets have cycles, but in crypto-assets they are more extreme and so far shorter. A typical cycle lasted about four years: euphoria, excess, crash, long bottoming, new start.
In bear markets many projects disappear while the infrastructure keeps being built. Observers therefore call the "crypto winter" a clean-up phase.
Whether cycles flatten as institutional participation grows is an open question. Past patterns are no guarantee of future ones.
From the familiar world
The seasons in farming: harvest is followed by winter, when seemingly nothing grows but the soil is being prepared. Anyone who only looks at the field in summer does not understand the cycle.
An example
After the high in late 2021 the overall market fell by more than two thirds by late 2022. During that time the groundwork for Bitcoin ETFs and MiCA was laid.
Why it matters
Knowing the cycles lets you rein in clients in euphoria and calm them in panic. That is the essence of composed advice in a volatile asset class.
To pass on
„Crypto markets have seasons: every summer is followed by a winter. Knowing that, you get neither euphoric in summer nor panicked in winter.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
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