Part 5/7:
Understanding recent market behavior requires recalling the unique dynamics of 2021, which was characterized by a somewhat stunted cycle. That year witnessed rapid price movements but also abrupt collapses in some sectors, creating a picture of a compressed cycle.
In contrast, the current environment seems to be in the opposite phase—an extended cycle. This prolongation points toward increased valuations, especially in assets more sensitive to liquidity shifts. As a result, asset prices, particularly in innovative segments like cryptocurrencies and tech stocks, could continue their upward trend longer than many expect.