cryptofie

A 70% drawdown doesn’t just hit your portfolio — it hits your mindset. Fear, regret, anger, and doubt all arrive at once. Most traders don’t quit because the market dies. They quit because their confidence does.

In a bull market, risk feels invisible. Gains come fast, conviction feels effortless, and everyone believes they’ve mastered the game. But when price collapses 50–70%, the emotional shift is brutal. The same asset that once made you feel invincible now makes you question every decision. That psychological swing is what shakes out weak hands.

The most common mistake during deep drawdowns is panic selling near the bottom. When losses feel unbearable, decisions become emotional instead of strategic. People sell to escape the pain — not because the structure demands it. Ironically, that’s often where long-term reversals begin.

Ego makes it worse. Some traders refuse to admit they were early, overexposed, or wrong. Instead of managing risk, they hold blindly. Discipline fades. Hope replaces planning.

Experienced investors operate differently. They expect volatility. They control position size. They separate emotion from structure. To them, a 70% drop isn’t the end of crypto — it’s part of the cycle.

During deep drawdowns, the real opponent isn’t the market. It’s your own psychology. Those who master fear and stick to structured decisions are the ones still standing when the next bull run starts.