Part 1/6:
Understanding the Business Cycle: Implications for Investing in Crypto
In the world of finance and investment, recognizing patterns can mean the difference between success and failure. One such insightful pattern is the business cycle—a consistent economic structure influencing market behaviors over the last century. This cycle has been particularly vital in understanding the rises and falls of both crypto markets and the broader stock market.
What is the Business Cycle?
The business cycle operates in four distinct phases:
- Expansion: Economic growth accelerates, businesses invest and hire, and consumer spending increases. During this time, inflation may begin to rise, and markets, including crypto and stock exchanges, typically perform well.