🎢 How Crypto Market Cycles Really Work

(and why memecoins are a 🚨 not a 🚀)

Some analysts are already predicting a trend reversal for Bitcoin, but maybe the period of growth is not over yet?

🔮 So let’s imagine crypto hitting new all-time highs and your portfolio is glowing green. When should you exit? To answer that, let’s break down the liquidity flow:

💸 When fresh liquidity enters the market (from investors, funds, traders, and retail), everything starts with the natural leader — Bitcoin:

1️⃣ Fiat → Bitcoin:

Bitcoin is the gateway to crypto.

Big money flows here first — from funds, institutions, and cautious investors.

Cash moves over from traditional markets like stocks, bonds, and gold.

2️⃣ Bitcoin → Major Altcoins:

Once BTC starts pumping, the hunt for bigger gains begins — enter ETH, SOL, BNB, AVAX and other large caps.

FOMO kicks in. Speculators join the party.

3️⃣ Large Caps → Mid-Caps & Hype Coins:

When the big names have already pumped, capital trickles down into smaller, riskier, and more volatile assets.

Mid-tier tokens, fresh ideas, and trendy names rise.

Everyone’s looking for “the next big one.”

Some explode and rise to the top 100... others burn out just as fast.

4️⃣ Final Stage — Memecoins:

At peak euphoria, logic disappears.

DOGE, SHIBA, PEPE, WIF, FLOKI — anything that looks like a meme animal starts flying.

These aren’t projects — they’re pure emotion.

Everyone’s chasing 10x in a week. This is your final warning before a crash.

❗️When memecoins start pumping hard, it’s usually the last act of the bull cycle. Too much money, too much emotion, not enough logic.

When greed beats reason, the market cools. Fast.

👆 So what can you do?

✅ Track market sentiment (like Fear & Greed Index or Google Trends).

✅ Lock in some profits during meme season — or even exit the market altogether.

✅ Resist diving into memes at peak hype — no matter how tempting it feels.

#education