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How Crypto Market Cycle Works

Updated: May 31, 2023

The cryptocurrency market has experienced a cycle of bull runs and bear runs since its inception in 2009. A lot of people are getting into this digital currency every cycle, and they also hear about the “crypto market cycle”. So, how does this crypto market cycle work? In this blog post, we will delve into the details.

How Does The Crypto Bull and Bear Market Work

The Basics of a Market Cycle

A market cycle refers to the natural pattern of ups and downs that occur within a specific market. For example, stocks, commodities, and currencies all have market cycles. Market cycles typically follow four phases: accumulation, markup, distribution, and markdown.

When the market is in the accumulation phase, prices are low, and investors begin to accumulate assets at a lower price. In the markup phase, prices start to increase, which leads to higher demand for that particular asset. In the distribution phase, investors start to sell their assets, as they believe that prices have peaked. Finally, in the markdown phase, prices drop due to excessive selling, and the market enters another accumulation phase.

How The Crypto Market Cycle Works

The crypto market cycle is a bit different due to the volatility associated with cryptocurrency. There is a significant amount of hype and speculation that surrounds cryptocurrency, which can cause the prices to fluctuate more rapidly. The crypto market cycle also follows four phases that are:

  • Accumulation- This phase begins when the market is experiencing a bearish trend. Investors accumulate cryptocurrencies at a lower price, expecting prices to skyrocket soon.

  • Markup- After the accumulation phase, the market witnesses a bullish trend, and prices rise. In this phase, investors start to feel confident and gain momentum.

  • Distribution- In this phase, prices skyrocket and reach their peak. Some investors may start to sell off their assets in anticipation of an upcoming downtrend.

  • Markdown- The last phase of the crypto market cycle is the markdown phase. In this phase, the prices of the cryptocurrencies start to decrease, and the market enters a bearish trend again. Investors sell to prevent further losses.

Understanding the crypto market cycle can help you make informed decisions when investing in cryptocurrencies. You can use an understanding of the market cycle to enter and exit the market at the right time. However, it's important to remember that the crypto market is highly volatile and can be unpredictable, so it's always important to do your research before investing.


In conclusion, the crypto market cycle works in a way that is similar to the market cycles of other assets. It goes through four phases - accumulation, markup, distribution, and markdown. It's essential to understand the market cycle to make informed decisions about when to buy and sell cryptocurrencies. Keep in mind that the market is highly volatile, so educate yourself and do proper research before investing.

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