The 4 Stages of a Crypto Bull Market: From Rebirth to Detachment

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The crypto bull market isn’t a sudden explosion—it’s a journey. Like the changing seasons, it unfolds in distinct phases, each marked by shifting sentiment, behavior, and market dynamics. Understanding these stages isn't just insightful; it's essential for navigating volatility, managing risk, and making informed decisions.

In this deep dive, we’ll explore the four key phases of a cryptocurrency bull cycle—Rebirth, Excitement, Euphoria, and Detachment—as originally outlined by Jason Yanowitz, co-founder of Blockworks. Whether you're a seasoned holder or newly curious, this framework helps answer a critical question: Where are we in the cycle—and what comes next?

Stage 1: Rebirth – The Quiet Awakening

After the long, cold grip of a bear market, the first signs of recovery are subtle—so subtle that most people miss them.

Doubt still lingers. The scars of previous losses run deep. Headlines remain negative, friends still joke about “going to zero,” and mainstream media continues to highlight failures rather than progress. Yet beneath the surface, something is stirring.

Prices begin to rise—not dramatically, but steadily. Assets that crashed 90% during the bear market might quietly surge 5x. But because they’re still far from all-time highs, many investors don’t celebrate. After all, a 5x gain from a 90% drop still leaves you down 50% from peak.

👉 Discover how early-stage market movements can signal massive opportunities before the crowd notices.

This phase is often invisible to the public but unmistakable to those who’ve lived through multiple cycles. These veteran crypto enthusiasts start accumulating again, not out of hype, but conviction. They recognize familiar patterns: improving on-chain metrics, rising developer activity, and the emergence of new narratives.

Yet for most, indifference prevails. New ideas spark briefly—only to fizzle out due to lack of interest. It’s a lonely time for believers.

But make no mistake: the bull market has already begun.

Key Characteristics:

Stage 2: Excitement – The Momentum Builds

Welcome to where we are now.

The bear market is officially over. Major cryptocurrencies are approaching—or even surpassing—their previous all-time highs. The mood shifts from cautious optimism to palpable excitement.

Within the crypto community, everyone is talking about it. Wallets are green. Profits are real. Projects that survived the winter are scaling up teams and launching new products. Venture capital starts flowing again.

But here’s the twist: your non-crypto friends still haven’t texted you.

They’re not asking how to buy Bitcoin. They’re not FOMO-ing into altcoins. Life outside the ecosystem continues as usual—while inside, it feels like a party that never stops.

You feel excited, maybe even anxious. You're making money, but you wonder: Did I buy enough? Should I leverage? What if I miss the top?

Daily habits change—maybe you’re treating yourself to avocado toast at Chipotle again. Maybe you’re booking that trip you postponed during the downturn. The future feels bright.

Yet this stage is also deceptive. Gains feel secure, but complacency creeps in. The real danger isn’t loss—it’s overconfidence before the storm hits.

Key Characteristics:

Frequently Asked Questions (FAQ)

Q: How do I know if we’re in Stage 2 or moving into Stage 3?
A: Watch for increasing retail participation and speculative behavior. If your non-crypto friends start asking about quick profits or new meme coins, you're likely transitioning into Stage 3.

Q: Should I sell during Stage 2?
A: It depends on your strategy. Many investors take partial profits here while letting the rest ride. Dollar-cost averaging out or setting profit targets can help manage risk without missing further upside.

Q: What signals mark the end of Stage 2?
A: When headlines dominate mainstream news, social media buzz explodes, and FOMO becomes widespread—especially among celebrities and traditional finance players—it’s a strong sign that Euphoria is near.

Stage 3: Euphoria – When Everyone Believes

Everything is up. Everything is breaking records.

Your portfolio is green across the board. That altcoin you bought during Rebirth? Now it’s up 100x. New narratives emerge not weekly—but daily. AI tokens today, RWA (real-world assets) tomorrow, decentralized social platforms the next.

Venture capital firms announce billion-dollar funds overnight. Due diligence takes a backseat to speed—everyone wants in before the next unicorn raises at a $1B+ valuation. Startups announce $100M+ funding rounds like it’s routine.

Mainstream media can’t get enough. Bloomberg, Forbes, CNBC—they’re all covering crypto again. Then comes the real signal: Fortune 500 companies start adding Bitcoin to their balance sheets.

Athletes launch NFT collections. Musicians tokenize their royalties. Artists auction digital works for millions. Crypto isn’t just an investment—it’s culture.

People believe prices will only go up forever. “This time is different” becomes the mantra. Rational thinking gives way to speculation. Greed takes over.

👉 See how market euphoria creates both massive gains—and dangerous blind spots—for unprepared investors.

Key Characteristics:

Stage 4: Detachment – The Peak of Madness

Also known as "mania", this phase defies logic.

You know we’ve hit Detachment when your cousin—who once thought crypto was a scam—launches a meme coin and becomes a paper millionaire overnight. A founder sells a vague “metaverse” idea and raises millions in minutes.

Crypto wealth becomes visible everywhere: private jets, luxury cars, sports team acquisitions. Marketing budgets explode—billions spent on Super Bowl ads, stadium sponsorships, and influencer campaigns.

Even global pop stars like Justin Bieber jump on decentralized social platforms. It feels like crypto has won.

But beneath the glamour lies fragility. Projects with no revenue, no users, and no clear roadmap command billion-dollar valuations. Investors aren’t asking questions—they’re afraid of missing out.

And then—inevitably—it cracks.

The smart money starts exiting. Whales distribute bags to retail buyers. Volatility spikes. One major event—a regulatory crackdown, exchange failure, or macro shock—triggers a reversal.

What follows? A brutal bear market that wipes out latecomers and teaches humility to survivors.

Key Characteristics:

Navigating the Cycle Wisely

The beauty—and danger—of crypto bull markets lies in their emotional arc. Each stage pulls you deeper into belief, excitement, and ultimately, delusion.

Recognizing where you are in the cycle allows you to:

👉 Learn how top traders use cycle awareness to time entries and exits with precision.

Remember: bull markets don’t die of old age—they end when belief becomes blind faith.

So enjoy the ride. Celebrate the gains. But stay grounded. Keep learning. And never let euphoria override your strategy.

Because after the peak comes the reset—and those who prepare will be ready for the next Rebirth.

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