Periods of strong rise generally end with a major crash, resulting from excessive optimism, leverage, and profit-taking.

How the cycle works:

The crypto market tends to follow cycles marked by euphoria and correction:

1. Gradual rise driven by fundamentals (such as halving or adoption).

2. Massive euphoria, with new investors entering due to FOMO.

3. Historical peaks, with record volume and accelerated appreciation.

4. Rapid decline, caused by mass selling and liquidations.

5. Bear market, with prolonged devaluation.

Historical examples:

- 2017: after BTC reached $$ 20.000, there was a crash of more than 80%.

- 2021: the peak near $$ 69.000 was followed by a drop to $$ 15.000 in 2022.

Altcoins generally fall even more — by up to 90% or more.

Factors that fuel the crash:

- Profit-taking by whales and institutional investors.

- Liquidation of leveraged positions.

- Fear spreading among novice investors.

- Negative news amplifying the panic.

Summary:

After significant rises, the market usually undergoes a severe correction, a natural part of the crypto cycle. Those who understand the cycles avoid buying at the top and prepare to accumulate during the declines.