Retail Investor Cycles

Retail investor cycles describe the recurring patterns of entry and exit by individual investors throughout market bull and bear phases. Typically, retail interest begins to grow after a significant price increase, peaks during the height of the bull market, and then collapses during the subsequent bear market.

These cycles are driven by a mix of media hype, greed, and eventual fear. Understanding these cycles is crucial for long-term investors who aim to avoid buying at the top and selling at the bottom.

By recognizing the stages of the retail cycle, one can better align their investment strategy with the broader market context. It emphasizes the importance of patience and contrarian thinking in digital asset investing.