Hello everyone. I want to talk with you about the inescapable cyclical patterns in the cryptocurrency market.

Over the past few years, I’ve seen countless stories on the front lines. Some people rush in at high prices and end up trapped; others cut their positions and exit during the darkest moments, only to miss the subsequent rebound. Actually, the crypto world isn’t entirely random; it follows strong cyclical patterns—these cycles are a recurring dance of greed and fear, and they are also a direct reflection of the global capital expansion and contraction.

I want to share some practical insights, not the dry definitions from textbooks. By looking beyond market appearances to understand the essence, we can grasp the key signals that signal the transition from bull to bear markets and vice versa.

**The Essence of Cycles: Liquidity and Human Nature**

Many people ask me, why does the crypto market have cycles? Can it be like the US stock market, with a long-term bull run lasting ten years? The answer lies in the fact that, although the size of the cryptocurrency market is growing, it remains a high Beta, high leverage, capital-driven market. Essentially, cycles are just the cycles of "money."

When the Federal Reserve opens up liquidity and the dollar overflows into the market, those with sharp senses and high risk appetite will flock to the highest return opportunities. Bitcoin? Naturally the first choice.

But at a deeper level, it’s human nature. The market is made up of people, and human nature hasn’t changed over thousands of years. When prices rise, the fear of "missing out" (FOMO) takes over rationality; when prices fall, panic about "assets going to zero" drives people to sell off. This psychological pendulum swing is the deepest engine behind the cycles.