@amnesia

Cryptocurrency market cycles, characterized by bull (upward) and bear (downward) markets, significantly influence investor psychology and behavior. In a bull market, optimism is high, and investors often experience FOMO (Fear of Missing Out), leading to heightened buying activity. This can result in rapid price increases. In contrast, bear markets breed fear and uncertainty, leading to panic selling and loss of confidence in the market. Many investors may try to time the market, buying during dips and selling at highs, though this is often challenging. Long-term investors may view bear markets as an opportunity to accumulate at lower prices, while short-term traders may become more risk-averse. Understanding these cycles is crucial for managing risk and making informed decisions.

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