Binance Academy
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The Psychology of Market Cycles
What is market psychology?
Market psychology is the idea that market movements reflect (or are influenced by) the emotional state of its participants. It is one of the main topics of behavioral economics – an interdisciplinary field that investigates the various factors that precede economic decisions.
Many believe that emotions are the main driving force of financial market transformations. It is the fluctuating trends of investors that create what are called psychological market cycles.
Market psychology is the idea that market movements reflect (or are influenced by) the emotional state of its participants. It is one of the main topics of behavioral economics – an interdisciplinary field that investigates the various factors that precede economic decisions.
Many believe that emotions are the main driving force of financial market transformations. It is the fluctuating trends of investors that create what are called psychological market cycles.
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