$BTC their initial capital. In trading, this means that traders become more tolerant of risk after experiencing profits, considering profit as "house money" and taking higher risks than they would with their own capital.

Why Does This Happen?

The House Money Effect occurs due to several psychological factors:

1. Mental Accounting: People tend to treat money differently based on its source. Profits are often considered less valuable compared to the initial capital. (people sell $BTC at 99k more than 109k)

2. Overconfidence: After a series of wins, traders may become overly confident in their abilities, leading to riskier trades. (buy meme coins)