I write this article knowing that many will criticize me, but I will still write it. I hope many players, especially newcomers, can avoid losing money. This is a forum where anyone can express their opinion, and if anyone wants to debate, please do so with knowledge. I believe the exchange has no right to stop me.
Price$BTC is currently $103,100 on Square, and there are many articles on forums predicting BTC will rise to $150k or even $200k; it won't drop below $100k. Everyone is shouting that the price will increase, and people are excited, with FOMO and greed driving it up. This is exactly when you are most likely to lose money. Are those who write these predictions selfless? Do they bear no guilt? What is their purpose?
Please listen calmly: BTC is a special coin with a limited supply; mining is nearly at its limit. Some have been lost due to holders losing access to their wallets, and the remaining supply in the market is distributed as follows: about 70-80% is held by exchanges and financial institutions, and 20-30% is traded freely and held by retail investors. Therefore, if we say it can be manipulated, it is an item that is extremely easy to manipulate; the method of manipulation is just different from that of meme coins.
What is the purpose of pushing the price up or driving it down? That is precisely the goal of the exchange and market makers (MM). For example, when the price is pushed up like in the current phase, financial institutions and holders want to raise the price to sell their holdings at a higher price, wishing to push the price further and offload their goods, which requires a corresponding number of buyers; otherwise, the price will crash according to market principles. Therefore, making the assertion that BTC will continue to rise and not drop is to attract FOMO buying demand, pushing new players to jump in, while holders of short positions feel psychologically compelled to close their loss-cutting orders (which is also buying). Thus, this will push the price up or keep the price from crashing, allowing them to sell at a higher price. But remember, the purpose of pushing the price is the goal of the exchange and MM, where MM can offload their goods at a high price, while the exchange can liquidate many assets. Once MM starts unloading, the price will crash due to the overwhelming volume held by MM. At this moment, the number of new entrants to the market is not large, and there isn’t a significant amount of capital to absorb the selling pressure; experienced players will not jump into FOMO at this point. Therefore, the speed of the crash will be very high.
Remember, money does not just appear out of nowhere; those who sell at the peak for high prices must have buyers willing to buy at those peak prices.
In this article, I do not encourage anyone to buy or sell; investing is a personal decision for each individual, but understanding the nature of the market will help you make accurate decisions.
$BTC
