Understanding Boom and Crash Cycles
Boom and crash cycles refer to the rapid and often unpredictable movements in asset prices, characterized by sudden increases followed by sharp declines. These cycles can occur across various financial instruments, including stocks, currencies, commodities, and cryptocurrencies. While traditional markets may experience boom and crash phases over longer periods, some derivative markets, like those associated with cryptocurrency, exhibit these cycles at an accelerated pace, sometimes within minutes or even seconds.
Boom and crash cycles refer to the rapid and often unpredictable movements in asset prices, characterized by sudden increases followed by sharp declines. These cycles can occur across various financial instruments, including stocks, currencies, commodities, and cryptocurrencies. While traditional markets may experience boom and crash phases over longer periods, some derivative markets, like those associated with cryptocurrency, exhibit these cycles at an accelerated pace, sometimes within minutes or even seconds.
