Crypto Cycle

Definition ∞ A crypto cycle describes the recurring pattern of expansion and contraction observed in the overall cryptocurrency market, typically spanning several years. These cycles involve distinct phases of price appreciation, market exuberance, correction, and subsequent accumulation. They are often influenced by events such as Bitcoin halving, technological advancements, and macroeconomic conditions. Understanding these patterns assists in long-term market analysis.
Context ∞ Cryptocurrency news frequently discusses the current position within the broader crypto cycle to provide perspective on market sentiment and future expectations. Whether the market is perceived to be in an accumulation, bull, or bear phase significantly influences investor strategies and reported events. Recognizing the cyclical nature helps interpret price movements and project potential future trends, offering a framework for market commentary.