What’s happening now is a kind of ritual that has played out repeatedly before the parabolic rise of altcoins. It usually begins when most people rule out the possibility of further corrections. At this stage, everyone suffers:
Those trying to “catch up” with leveraged trades often lose everything, including their entire deposits, for the duration of the cycle.
Spot market investors recall the pain of the bear market and accumulation period, selling to avoid reliving those struggles—despite enduring three years of depression to get here.
Those who managed to sell to buy cheaper will indeed buy but will exit again at the first recovery, missing the parabolic growth that follows without them.
If you haven’t sold, rejoice! Because no matter what you do, you’re likely to lose. This is not your game. We retail investors are doomed to make "inefficient" decisions more often than "efficient" ones.
The only ones who win are those who do nothing (or buy more). Both actions, however, are counterintuitive for our psyche during moments like these. Survival instincts are an investor’s worst enemy.
From an evolutionary perspective, humans survived by reacting quickly to danger. Corrections feel like threats:
Selling, reallocating, or attempting to improve your position feels like “fleeing the danger.”
Inaction, on the other hand, feels like weakness or ignoring a threat.
In today’s reality, your fear and urge to act are tools used by strategic, long-term players and big capital to their advantage.
Market participants are once again gripped by fear, panic, and disappointment—this is the strongest confirmation of imminent growth and a bright future ahead. Our psyche instinctively considers the most vivid memories as the most likely scenario. For many today, that means recalling the long, painful eight-month corrections.
In such conditions, big capital cannot sell (there’s no demand). A global downturn is only possible after a prolonged growth period, when the majority begins seeing every correction as an opportunity rather than a tragedy, fully confident in rapid price recoveries. A significant downturn will certainly not happen in accumulation ranges—the zones where big capital has been building positions for three years.