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The debt cycle theory outlines a foundational framework that governs the micro and macroeconomic landscapes, ultimately dictating the waves of prosperity and decline in markets, including cryptocurrencies. This theory identifies key phases, which reflect the borrowing and repayment behaviors across various sectors, from individuals and families to governments and banks. By examining how these players handle debt, the theory accurately captures explosive price movements in cryptocurrency, as evidenced by notable bull runs in 2013, 2017, and 2021.