Source: Talking about Li.
Yesterday (March 7, Eastern Time), the first cryptocurrency summit was held at the White House, marking a new milestone event for the crypto industry, as this was the first time the U.S. government specifically discussed the future of cryptocurrencies and their regulation, aiming to strengthen the U.S. leadership in the digital crypto economy, which also signifies the formal recognition of cryptocurrency as part of the U.S. financial system.
Including some information revealed at the meeting, we need to think and pay more attention to it, such as:
- Regarding stablecoins.
The U.S. plans to introduce a federal law regulating stablecoins before August 2025 to ensure the transparency and stability of stablecoins like USDC (while preventing the use of competitive stablecoins pegged to foreign currencies) and to consolidate the dollar's dominant position as the global reserve currency.
- In support of innovation.
The U.S. government has pledged to relax regulations on the cryptocurrency market to support innovation and will establish a new digital asset working group to develop some transparent policies.
- Regarding altcoins.
In the current strategic reserve plan, Bitcoin's special status will be treated differently from other crypto assets; the government may consider setting up a separate fund for other crypto assets (excluding Bitcoin), but specific details are currently unclear. Our intuitive understanding is that at this stage, the U.S. government remains uncertain about altcoins like ETH, XRP, and SOL, and there is no clear regulation yet; further policy announcements are still needed.
Although the White House crypto summit has laid a new foundation for the future development of cryptocurrencies, the market still faces declines in Bitcoin and altcoin prices. The reasons for this issue were mentioned in our previous articles; currently, market sentiment is generally low, and there are no favorable conditions in the short term to meet expectations for a rally, even events at the level of the White House summit can only be seen as 'bad news'.
People hope that the U.S. government will invest funds and purchase Bitcoin on a large scale, but it hasn't happened; people hope for tax incentives regarding cryptocurrencies, but that hasn't happened either... The hopes people had before the summit are matched by their disappointments afterward, thus leading to further declines in the market, and the risks of short-term corrections continue to escalate.
Last year's approval of the ETF represented the formal entry of large institutions, and this year's strategic reserves signify the formal entry of the national team. The crypto industry seems to be developing in a positive direction, but at the same time, the opportunities for ordinary people to get rich are indeed becoming fewer and harder. While looking to the future, it is better to cherish the present.
Although it seems very difficult right now, and there are various uncertainties in macro factors, the Federal Reserve does not seem to have the willingness to urgently cut interest rates, and Trump seems to be continuously pressuring Powell. The combination of various uncertainties has not only led to drastic fluctuations in the crypto market but also the U.S. stock market has not been doing well recently. In this situation, for most ordinary people, patiently waiting for new opportunities may be better than making random trades.
For example, for some new PvP games, if you have the time and energy and want to participate, just play casually, but don't hold onto the idea that you can get rich overnight (or turn your situation around overnight). Yesterday, I noticed some partners discussing a new MemeCoin called Cocoro (the name of a new dog owned by the original DOGE dog KABOSU), which supposedly received support from Base officials, but judging by the post-launch trends, it seems that most partners are not doing well either, as shown in the image below.
In the midst of many people's pessimistic emotions, the current market has re-entered a relatively harsh phase, with more and more people beginning to lose patience and more funds. A couple of days ago, a partner messaged me saying that he is currently fully invested in altcoins (80% ETH and 20% other altcoins) and has been holding without any movement; his position has dropped from a maximum of 15 million to just 3 million now.
After a brief conversation, I learned that this partner actually had a relatively low cost basis for holding ETH, and even though their position has dropped to 3 million, they still have profits. In this situation, my personal view is that regardless of whether it was due to not setting reasonable profit-taking goals or not strictly following their trading records, the past can only serve as historical experience, not something to continuously dwell on. It is better to forget about the 15 million and start planning new goals; otherwise, similar situations may occur a second or third time.
In fact, many people, including myself, will experience profit drawdowns or capital losses; the difference is that some people choose to let go (accepting the outcome), while others never can (willing to gamble but unwilling to accept losses). In our previous articles, we have mentioned many times that this market cannot allow everyone to make money; losing money is the ultimate fate of most people, especially during seemingly beautiful bull markets, which often lead many to lose everything.
So, how can we maintain our psychological progress in such situations?
1. Abandon the thought of 'I could have...'
For example, I could have earned 10 times, I could have avoided buying certain coins, I could have ignored someone's advice, I could have...
I remember a partner in the group mentioned a phrase: If given a chance to return to the past, most people still cannot change their fate.
I think this statement is very reasonable because investing is a comprehensive practice, but most people are often swayed by emotions.
In our previous articles, we have always mentioned that the market is cyclical; what we need to do is not to try to control the market but to adapt to it, while also striving to maintain emotional stability (do not panic).
For short-term trading, just strictly manage your stop-loss/take-profit based on your position and risk preferences. For long-term trading, as long as you have a long-term favorable view of the target, it's enough to patiently operate based on risk preferences over larger time frames.
2. Abandon the thought of 'I want to recover my losses quickly.'
This question is also one of the most frequently encountered issues I have faced; many friends like to message me, and their core purpose is to hope that I can provide them with specific trading guidance to help them recover losses quickly.
Of course, I certainly cannot assist with this kind of thing. First, my personal principle is to only share knowledge and not provide trading guidance (including signals and calls). Secondly, to be frank, I don't have any trading secrets that can help people recover losses quickly; if someone claims to have such secrets, you should be cautious of your principal, as they are likely to be a scammer.
Many people (especially newcomers who have recently entered this field) tend to choose to engage in some revenge trading after experiencing losses. In fact, once you fall into this vicious cycle, not only will you continue to lose more principal, but you may also slowly lose yourself.
I want to recover losses quickly ≈ I want to incur more losses.
The market is ruthless; it does not care about your (anyone's) losses. We mentioned in previous articles that the core logic or play of the market is to make as many people lose money as possible.
Therefore, when you face (acknowledge) temporary failures or setbacks, the best approach may be to 'do nothing' until you have rethought what you are doing.
3. Preserving gains is more important than earning more.
Especially during bull markets, when the market enters a highly speculative phase (when market sentiment is high), your main goal should not be to earn more money but to prioritize preserving existing profits.
A bull market is an opportunity, but for most people, it often turns into a beautiful trap.
If you are doing short-term trading, you must maintain a clear mind, manage risks well, stay focused, and strictly adhere to your trading discipline. If your investment strategy is long-term, then you don't need to care about any short-term fluctuations; it is better to spend more time doing other things you are interested in, such as going for a run or spending more time with family.
Money can never be earned completely; do not easily compare yourself with others, but rather compare yourself with your past. Losing at the starting line does not count as losing, and do not envy those who race against you in sports cars, because most participants cannot sustain the run to the finish line. In this field, we only need to be ahead of these majority.
To give the simplest example, if you have $100,000 and gamble on MemeCoin, you might make $10 million in a day, but it could also go to zero in a day. On the other hand, if you take that $100,000 and invest it reasonably in on-chain financial management, achieving an average annualized return of 10%, after 10 years, your $100,000 would grow to $260,000 (compound growth).
This is just a simple example of financial management. If you had started investing $1,000 in Bitcoin every month on the 1st of each month since March 2020 and did nothing else until March 2025, your total investment would be $60,000, but now you would own about 1.766 Bitcoins, worth over $150,000.
4. Reduce information interference
Currently, there is a vast amount of news, information, and insights online, and there are also many so-called experts and teachers. The information is mixed and varied, and to say something that may sound unflattering, if you follow 1,000 experts/teachers, 99% of them or their viewpoints will only add to your emotional uncertainty, FOMO, or panic, and will not truly enhance your understanding and logic.
Moreover, over 90% of so-called experts or teachers, especially those who frequently show off their trades and claim to always buy at the lowest and sell at the highest, may not actually know much about trading, or they haven't participated in any trades at all, or they are losing money just like you; they just won't tell you the truth because you (or traffic) are their true source of income.
Unless you have the ability to efficiently filter and identify effective information from a massive amount of information, it is better to simply stay away from those who create anxiety, reduce information interference, and maintain quiet reflection or read some reliable deep articles, research, or reports. Only then can you fundamentally achieve better and faster cognitive growth.
5. Always stay optimistic.
Yes, losses can indeed make people anxious, and anxiety can lead to pessimism, but life must go on.
In terms of investment, as long as the market exists, new opportunities will arise. Rather than obsessing over past failures, it is better to reconsider how to make good use of this time to do some new achievable things. For example, learning new trading skills (K-line knowledge, programming, trading books, etc.), researching market patterns (historical cycles, liquidity, on-chain data, etc.), starting to make study or trading notes, and sharing and communicating with like-minded people (because the best learning is through output and not just input)...
That's all for today. The images/data mentioned in the text have been added to the Notion of Talking about Li. The above content is merely personal views and analyses, serving only as a learning record and for communication purposes, and does not constitute any investment advice.