According to Compounding Quality (@QCompounding), business cycles represent the natural fluctuations in the economy, characterized by alternating periods of growth (expansion) and decline (recession) (Source: Twitter, June 9, 2025). For cryptocurrency traders, understanding these cycles is essential as economic expansions often lead to increased liquidity, higher risk appetite, and upward momentum in crypto prices, while recessions tend to trigger risk-off sentiment, reduced trading volumes, and potential sell-offs across digital assets. Monitoring macroeconomic indicators linked to business cycles can help traders anticipate market volatility and adjust strategies for Bitcoin, Ethereum, and altcoins.

According to @Andre_Dragosch, Bitcoin's volatility is primarily driven by the fluctuations in business and monetary policy cycles, not by its supply growth, which remains predictable and stable.