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Market Cycle

Definition

A market cycle represents a recurring pattern of expansion and contraction in asset prices over time, driven by shifts in investor sentiment, economic conditions, and supply-demand dynamics. These cycles are typically characterized by distinct phases, including accumulation, markup, distribution, and markdown. Recognizing and understanding market cycles is essential for developing informed investment strategies and anticipating potential price movements within the digital asset space. The cyclical nature of markets suggests that periods of growth are often followed by corrections.