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 themes of behavioral economics, a multidisciplinary field that studies the various factors that precede economic decisions.
Many believe that emotions are the main driver of financial market fluctuations. And that the fluctuating aggregate sentiment of investors is what is known as the psychological cycles of the market.
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 themes of behavioral economics, a multidisciplinary field that studies the various factors that precede economic decisions.
Many believe that emotions are the main driver of financial market fluctuations. And that the fluctuating aggregate sentiment of investors is what is known as the psychological cycles of the market.
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