The Daily Mail reports that many businesses in the UK have followed the trend to buy $BTC and are now trapped.
Seeing this kind of news, I am not surprised at all. I mentioned in the square before that institutions are never really anything divine; many times they are just makeshift groups, only better packaged. The old saying on Wall Street puts it very bluntly: the higher the education, the fatter the wallet, the thicker the chives. It sounds harsh, but it is often true in the market.
Whether retail investors or institutions, the essence is still the 80/20 structure, with most people losing money, only institutions lose in a more 'decent' manner. Market makers seem to make a profit easily, but in reality, it is just big fish eating small fish, feeding on volatility and counterparties. Once a judgment error occurs, the principal still gets hurt.
In the last round at 69,000, institutions rushed to buy; in this round, there are daily news of institutions continuing to increase their positions above 100,000. Many retail investors start to think: if institutions are not afraid to buy at 100,000, what are we afraid of? If they dare to buy, are we too timid?
However, as long as you understand a little about the common sense of buying low and selling high, or have read a book like 'Mania: Mass Hysteria and the Bubble Economy', you wouldn't think this way. History repeatedly proves one thing: crowds are always most excited at high positions, buying, holding, and fantasizing about even higher prices; at low positions, during a deathly silence, they cut losses, give up, and are bearish about the future. This has never changed.
Investment is actually both serious and simple. What really needs to be done is: buy at the right price and then wait patiently. The difficulty lies in overcoming human nature, not in understanding how complex the models are. As long as you are willing to return to the most basic common sense, not be dazzled by packaged stories, and not blindly believe in any authority, you have already surpassed the vast majority of people in the market.
