Why do many people chase gains and kill losses when they see good or bad news in the crypto market, only to frequently get liquidated?

The fundamental reason is simple: the "core factors" that truly influence prices in the crypto market are not in the trades before your eyes.

1. The crypto market is one driven by emotional speculation, not one that speaks through fundamentals.

Don’t be fooled by how serious the crypto market seems, claiming to be a "blockchain revolution" or that "technology changes the world"; it sounds grand. But to be honest, having been in this circle for many years, what I've mostly seen is concept speculation. Before a project pumps, a big story is told, embellished to the skies, attracting retail investors to rush in, only to end up being cut down as chives before the big players exit.

So what you think is a technical investment is actually a game of emotions and capital. The crypto market does not have the fundamentals like revenue and profit as the stock market does; it is purely a speculative market, heavily manipulated, where the big players call the shots.

2. What truly affects coin prices is not the news you see but how the big players "capitalize on the news."

For example, the recent situation in the Middle East: the conflict between Israel and Iran seems like a major negative factor, and logically, the market should panic. But look at the Israeli stock market; it not only didn’t drop but instead hit a historic high!

Why? Because the big funds behind the scenes had already positioned themselves; they have their own judgment logic, not reacting to surface news but looking at deeper capital movements.

In other words, whether war news is negative or not is not up to you to decide; it depends on how the big players "use this news" to harvest retail investors.

3. The "fundamentals" of the crypto market are actually off the exchange, in politics, capital, and global games.

Many coin price trends currently have little to do with the internal dynamics of the crypto world, but rather are related to "off-exchange factors" such as war, U.S. interest rates, and U.S. stock trends. Most retail investors do not understand these things at all.

For instance, Powell's speeches, U.S.-Iran relations, whether the war escalates, etc., these factors are much more important than the technical indicators you see in the crypto market.

4. What should be done next?

Personally, I don’t make long-term judgments. I only focus on one question: who is controlling the market in the short term? What do they want to do?

My view is that from June to July, this is not the beginning of a crash; rather, it is a good opportunity to scoop up cheap chips.