The historical performance doesn’t guarantee future results…
…unless everyone believes it will? 🤔
The self-fulfilling prophecy is a powerful economic mechanism and might be why cryptocurrencies are cyclical. Here’s how it works:
➡️ People expect that the bullrun will happen soon.
➡️ Because of that, they buy $BTC , $ETH , $SOL and other cryptocurrencies that seem promising.
➡️ If enough people buy in, believing in the bull run, prices go up due to the high demand.
➡️ This makes the bull run actually happen!
Bitcoin halving cycles often play a big role in these patterns. Investors expect crypto prices to surge post-halving, so they start buying, which pushes the price higher.
The same can happen with downturns: if people expect lower prices, they hold off, which slows market growth.
With recent gains, it's worth asking yourself: are we seeing solid fundamentals or just collective belief in action?