Why Bitcoin Repeatedly Crashes: Cycles, Emotion and Major Triggers
Bitcoin’s recurring crashes are driven by a mix of market cycles, investor psychology, major news events and occasional technical failures. The article explains that Bitcoin follows boom-and-bust cycles often tied to the halving schedule, where post‑halving rallies attract retail FOMO and later trigger sharp sell-offs when large holders exit. Fear and FOMO amplify moves: rising prices lure inexperienced investors who tend to sell first during downturns. External triggers — regulatory actions, exchange failures, bankruptcies, interest-rate shifts and high-profile negative headlines — can spark rapid market-wide liquidations. Technical incidents and hacks add sudden confidence shocks, accelerating outflows. Historical drawdowns cited include 2013 (~-82% after Mt. Gox), 2018 (~-83% post-ICO bubble), 2021 (~-58% amid bans and rate hikes) and 2022 (~-65% after FTX). The piece distinguishes between crashes and healthy corrections, advising traders to avoid panic-selling, consider time horizons, and recognise that past cycles show recoveries over time. Primary SEO keywords: Bitcoin crash, market cycles, FOMO. Secondary/semantic keywords: halving cycle, exchange hack, regulatory risk, market correction. Practical takeaways for traders: monitor macro/regulatory headlines, watch liquidity and large-holder behavior after rallies, use position sizing to survive volatility, and treat sharp drops as either risk events or potential entry opportunities depending on strategy.
Bearish
The article outlines structural and behavioral causes that repeatedly produce sharp downside moves in Bitcoin: cycle-driven overheated rallies (often post-halving), concentrated selling by large holders, retail FOMO-led positioning, and sensitivity to negative news (regulation, exchange failures, macro shocks). Those factors increase tail risk and the likelihood of rapid liquidations during stress, which is short-term bearish for price action because they amplify downdrafts and reduce market confidence. Historically, major crashes listed (2013, 2018, 2021, 2022) show similar catalysts and deep short-term drawdowns. For traders: expect heightened volatility after prolonged rallies or following halving events, prioritize risk management (stop sizing, liquidity checks, margin caution), and watch newsflow for potential triggers. In the medium-to-long term the repeated recovery pattern noted suggests potential buying opportunities for risk-tolerant investors, but that does not negate short-term bearish pressure when the described triggers occur.