Why Many Lose Money in Crypto: A Cycle Breakdown 🚨
Crypto’s bull run cycles are no secret. History shows they repeat roughly every 4 years, but many still face losses. Here’s a breakdown of why:
1. The Anatomy of a Bullrun Cycle 📅
Each 4-year cycle has three bearish years followed by one explosive bullish year. Take past cycles:
2014-2018: Bear = 177 weeks, Bull = 34 weeks
2018-2022: Bear = 157 weeks, Bull = 47 weeks
2022-2026: Still in a bear phase as no new ATH (All-Time High) has been broken.
2. Market Psychology 🎢
A bull run is a roller coaster of emotions, influencing investor decisions at different phases:
Red Phase (Bear): Complacency to Panic to Capitulation.
Yellow Phase (Accumulation): Anger to Depression to Hope.
Green Phase (Bull): Optimism to Euphoria.
3. How It All Adds Up 💥
When the anatomy of the bull run meets market psychology, investors get trapped.
Red Phase: Many hold through declines, hoping for recovery, then panic-sell after deep losses.
Yellow Phase: Lack of confidence in recovery, leading to missed opportunities.
Green Phase: Euphoria kicks in, but hesitation to sell once prices peak causes losses as the cycle restarts.
Lesson: Awareness of these phases helps avoid losses. Time to understand the cycle and your emotions!
