Ledger Academy – Accumulation Phase Crypto
Each crypto market cycle goes through a predictable pattern of highs and lows. Understanding these cycles is key to handling your cryptocurrency portfolio effectively and profitably. Ledger Academy aims to demystify the various market phases so that you can make better investing decisions even in the most volatile times.
Accumulation Phase Crypto
The accumulation phase crypto cycle begins shortly after a major crash when prices are at their lowest point. Investor interest is typically low and trading volume remains moderate, resulting in a stable market with minimal price volatility. During this time, astute investors and early adopters start to accumulate crypto assets in anticipation of future price appreciation. Fundamental developments, technological advancements, and regulatory clarity can often trigger this phase of the cycle.
When the market reaches the end of this phase, it usually bottoms out, as the price begins to rebound. The accumulation phase is a good time to buy as the value of the asset is at its most affordable. Smart investors HODL during this period, as they know that it’s more likely for the price to go up than down in the near term.
As the market recovers, positive news can stimulate investor interest and trigger the next phase of the cycle — the markup phase. The overall market sentiment transitions from negative to hopeful neutrality, and as the demand for an asset increases, it’s likely to rise in price over a long-term basis.