Why 99% Of 2025 Crypto Buyers Will Lose Money

Lark Davis

Introduction to Cryptocurrency Market Cycles

The cryptocurrency market is expected to enter a bubble phase in 2025, which can be lucrative for prepared investors but disastrous for those who are not. Understanding market cycles is crucial to making informed decisions.

The Four Stages of Market Cycles

  1. Accumulation: The stage where investors start buying into the market, often after a crash.
  2. Growth: Prices begin to rise as more investors enter the market.
  3. Bubble: A stage characterized by rapid price increases, often driven by speculation and fear of missing out (FOMO).
  4. Crash: The inevitable downturn where prices plummet, wiping out gains.

Historical Context

  • The collapse of FTX in 2022 marked the bottom of the previous cycle.
  • 2023 was an accumulation phase, with Bitcoin recovering losses.
  • 2024 saw significant growth, with Bitcoin's price surging due to the halving event and ETF approvals.

Preparing for 2025

Given historical patterns, 2025 is likely to see a bubble phase. Investors should be prepared for extreme volatility and have a plan for when the market inevitably corrects.

Emotional Control and Market Psychology

  • Financial markets are driven by fear and greed.
  • Investors must control their emotions to avoid buying high and selling low.
  • Being contrarian and staying sane during market euphoria or panic is key.

Signs of a Bubble About to Burst

  • Extreme and over-the-top claims about the market's future.
  • Mainstream media and celebrity involvement in crypto.
  • Google searches and media attention reaching insane levels.

Importance of Having an Exit Plan

  • Smart money will sell first, leaving retail investors vulnerable.
  • Having a plan for when to sell is crucial to avoiding significant losses.
  • Failing to plan is planning to fail.