When buying an asset for $200 and the price drops by 50%, that price is now only $100. To recover to the original $200, the asset needs to increase by 100% from the new price – meaning it has to double. This shows a harsh reality of mathematics: a percentage decrease cannot be remedied by the same rate of increase, but requires exceptional growth.

For cryptocurrencies, the numbers are even more alarming. A coin that drops from $200 to $40 (a decrease of up to 80%) will need to increase by 400% to return to its original price. As a result, many investors fall into a 'loss trap' when the recovery path becomes nearly impossible.

Basic calculations explain why 95% of investors in the crypto market are facing losses. Most of them bought in during the hype explosion before the market collapsed, and now only a 'parabolic explosion' can save the situation. Even those investors who bought in during recent corrections can only hope for unusual recovery conditions.

Even when a major global event occurs, such as the return of a reputable political figure, investor confidence is only temporarily boosted. The cryptocurrency market nearly collapsed even under favorable conditions. If the global economic situation worsens – with predictions of recession and severe liquidity decline – the crypto market may face one of its toughest challenges. The reality is that, despite a few signs of minor recovery, most altcoins have not regained more than 15% of their lost value.

Another concerning trend is the group price movement. Many crypto markets witness multiple coins dropping sharply at the same time, with hundreds of coins falling according to the same chart pattern. This suggests a high level of market manipulation, as institutional investors – who were expected to provide transparency and stability – instead play a role in manipulating the market at will. The space that was once considered decentralized now seems to be controlled by a few 'big players' capable of manipulating prices.

Investor Coping Strategies

With the market context becoming extremely uncertain, the optimal strategy for investors is to be cautious and flexible. Some useful advice includes:

  • Take early profits: Even if you only achieve a small profit, consider selling to preserve your capital.

  • Avoid long-term 'holding': Do not hope for a miraculous recovery in the distant future, as the market may continue to fluctuate strongly.

  • Conduct thorough fundamental research: Investment should be based on solid fundamental factors rather than just following trends or crowd psychology.

Conclusion

The cryptocurrency market today is witnessing strong fluctuations and undeniable manipulation. From the incredible numbers of percentage increases and decreases to the complex interactions between global economic factors, it is not surprising that up to 95% of investors are facing losses. In this context, applying cautious strategies, taking early profits, and investing based on solid foundations becomes extremely necessary.

While the market may still present opportunities for those who buy at the right time, the majority of risks and instability make the recovery journey extremely difficult and unpredictable.