Crypto Cycles

Definition ∞ These are recurring patterns of expansion and contraction observed in the cryptocurrency market. They are typically characterized by periods of significant price growth followed by sharp declines, often influenced by technological adoption, investor sentiment, and macroeconomic shifts. Understanding these cycles is crucial for anticipating market trends and strategic asset allocation.
Context ∞ Current analysis of crypto cycles often involves identifying where the market stands within the broader trend of adoption and innovation. Debates persist regarding the predictability of these cycles and the factors that might alter their typical duration or intensity. Future developments to watch include the impact of regulatory clarity and the maturation of blockchain technology on cycle dynamics.