Why History Repeats Itself
Human Psychology: Fear and greed drive financial markets. Investors often act irrationally, driven by emotions rather than logic. The fear of missing out (FOMO) can lead to buying at the peak, while panic can cause selling at the bottom.
Market Manipulation: Large institutional players, or "whales," have the ability to manipulate market prices through large buy/sell orders, news dissemination, or other tactics, effectively controlling the cycle's timing and severity.
Media Influence: Media plays a significant role in shaping public perception. Positive news during bull runs and negative news during downturns exacerbate market movements, creating a feedback loop of emotions.
Regulatory Changes: New regulations or legal challenges can impact market sentiment significantly, often leading to sudden price fluctuations.
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