#加密市场回调
1. The Nature of Corrections: An Inevitable Phase of Market Cycles
- High volatility is a characteristic of the crypto market: Compared to traditional assets, the cryptocurrency market has relatively low liquidity, a complex participant structure (including a large number of retail investors, institutions, algorithmic trading, etc.), and the influence of leverage and derivatives amplifies volatility.
- The Norm of Bull and Bear Cycles: Whether it's the bursting of the ICO bubble in 2017, the sharp drop on 'May 19' in 2021, or the collapse of LUNA/FTX in 2022, history shows that the crypto market alternates between explosive rises and falls. Corrections (even deep drops) are processes for the market to digest bubbles and re-accumulate chips.
- For investors:
- Opportunities outweigh risks: Corrections provide long-term investors with lower-cost entry opportunities, especially for mainstream assets like BTC and ETH.
- Stress testing: Corrections can test the resilience of projects; truly valuable protocols (such as leading DeFi projects and infrastructure) typically recover, while worthless projects may go to zero.
- For market health:
- Deleveraging: Eliminating excessive speculation and reducing systemic risk.
- Value discovery: Prices returning to fundamentals, promoting more rational industry development.