Cryptomena: Understand market cycles
The world of cryptocurrencies has been on a wild road in recent years, and prices have been increasing and collapsing into a rapid succession. While some investors have received astronomical returns, many others have lost a significant amount of money due to bad weather and poorly informed decisions. In this article, we deepen the world of market cycles cryptocurrencies and examine what they mean for investors.
What is a market cycle?
The market cycle refers to natural fluctuations that occur over time on any financial market. These cycles can be affected by several factors such as interest rates, economic indicators, technological progress and global events. In the case of crypto markets, several key players form a trend:
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- Innovation in blockchain technology : Development of new technologies and blockchain cryptomena is an important promoter of market cycles.
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Global economic trends : Global economic indicators such as GDP growth rate, inflation levels and commercial balances may affect cryptocurrency prices.
Market cycle 5 to 10 years
Cryptom markets follow a natural cycle that covers more than five to ten years. This cycle consists of three phases:
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- Ciero (year -3 and -5) : The rest of the trend when investors are becoming more and more cautious and prices are falling as a result of negative reports, regulatory concerns or economic recessions.
- Reflection (year 0-5) : Recovery period when investors gain confidence and the market begins to grow again.
Market cycle 1 -year
The market cycle in one place is influenced by short -term economic indicators such as GDP growth rates, inflation levels and employment rates. This cycle consists of three phases:
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- Corhe (Q4 2019 to the third quarter of 2020) : The declining trend when investors are becoming increasingly cautious and prices are falling as a result of negative news and economic interests.
- Rebound (Q1-Q2 2020) : Recovery period when investors gain confidence and the market begins to grow again.
Market cycle from 6 to 12 months
The market cycle of six to two months is influenced by a longer -term macroeconomic trend, such as changes in interest rates, economic indicators and global events. This cycle consists of three phases:
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- CERCADO (Q1-Q2 2020) : The rest of the trend when investors are becoming more and more careful and prices are falling as a result of negative news and economic interests.
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Market cycle 24-36 months
The market cycle for two to three years is influenced 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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- CERCADO (Q1-Q2 2021) : The declining trend when investors are becoming increasingly cautious and prices are falling as a result of negative news and economic interests.
- Rebound (Q3-Q4 2021 and Q1-Q2 2023) : The recovery period when investors gain confidence and the market begins to grow again.
What can investors do?
Understanding market cycles is decisive for informing about investment decisions in the field of cryptocurrency.