Today's hot topic on Binance Square #加密市场回调 actually reflects a normal correction after a rapid upward surge. After reaching a new high, Bitcoin's short-term decline has widened, leading Ethereum and mainstream altcoins to collectively retreat, causing a significant shrinkage in overall market capitalization in a short time, with leveraged funds being concentrated and liquidated, and sentiment swiftly shifting from 'only discussing bull markets' to 'first preserving profits'.

This round of adjustment has roughly three reasons: first, the macro environment has turned cautious, with global risk assets generally under pressure, and funds retreating from high-risk markets; second, the previous price increase was too large, the technical indicators were obviously overbought, and some institutions took profits at high levels, actively creating a 'healthy reshuffle'; third, leverage in the contract market has been accumulated over a long time, and once prices reverse, it can amplify declines, triggering a chain of liquidations and further intensifying volatility.

For ordinary investors, the more important question is not 'why is the market falling', but 'what should I do'. If you are optimistic in the long term and have a reasonable position, fluctuations of 10%-30% are mostly just a 'halftime break' in a bull market; but if you are fully invested, frequently chasing highs and cutting losses, each adjustment could turn into a disaster for your account.

A correction is not the end of a bull market, but rather a process of capital turnover. Being able to hold onto your capital and optimize your position structure during fluctuations is more important than just watching the K-line.

The above content is only a personal opinion and does not constitute any investment advice.