What Is a White Swan Event?
A white swan event refers to an event that is highly predictable and anticipated, with a clear impact that can be quantified.
These events are considered certain to occur and are often attributed to human error.
A white swan event can be contrasted with a black swan event, which is unexpected and has a severe impact that is difficult to foresee.
White Swans in the Crypto Market
The crypto market is a white swan event due to its predictable long-term trajectory.
Over the past decade, the crypto market has experienced significant growth despite periods of bearish conditions.
The market’s recovery after downturns follows a predictable pattern, similar to a pendulum swinging back to equilibrium.
During periods of growth, the crypto market tends to rise rapidly, often reaching new all-time highs.
The increasing demand fuels this growth as more people engage with cryptocurrencies.
Given that only a small percentage of the global population has interacted with crypto, there is still ample room for expansion, which is expected to increase market capitalization.