Everyone who invests is not suitable for trading in the cryptocurrency market, because they will trade coins with a strange mindset.
In the cryptocurrency market, price determines everything; first comes the price, then the world.
First comes the price, then the computing power.
First comes the price, then the liquidity.
First comes the price, then the valuation.
The value foundation in the cryptocurrency market is based on price.
Everything you see that appears to have value is built on a very fragile liquidity price foundation.
Once liquidity exits, all seemingly correct logic will fail.
When the price of a coin rises, it attracts attention, creates narratives, attracts developers, brings liquidity, supports computing power... all of this in turn "proves" its value, pushing the price further up.
Thus, this is a bull market.
Price falls → triggers doubt and panic → liquidity withdrawal → narrative bankruptcy → fundamentals deteriorate → further exacerbates price decline.
Thus, this is a bear market.
In the cryptocurrency market, there is only price; price determines everything.
There is no other fresh matters.
Because of this, the cryptocurrency market is inherently suitable for trend trading; if it rises, everyone is bullish, if it falls, it heads towards zero. Just trade according to the market; do not try to be clever and engage in value investing.
This is my conclusion after experiencing two cycles, which is not necessarily wrong. #美联储降息 $ETH
