$BTC

Why do I know BTC will drop to that area and then bounce back

Bitcoin (BTC) is one of the most valuable cryptocurrencies and is of great interest to many people, but not everyone makes money from it. Here are the main reasons why making money from BTC is difficult:

### **1. Extremely High Price Volatility**

- BTC is known for its strong volatility, which can rise or fall **10-30% in just one day**.

- Newcomers are easily affected by **FOMO** (buying at the peak) or **panic selling** (selling off when prices drop), leading to losses.

### **2. Fierce Competition**

- **Bitcoin Mining**: Requires expensive hardware (ASIC), high electricity costs, and competition with large "mining farms".

- **Trading**: The market has many professional traders, sharks manipulating prices, making it hard for newcomers to profit.

- **Long-term Investment (HODL)**: Not everyone has the patience to hold BTC for many years, especially during a downtrend market.

### **3. Security Risks & Scams**

- **Scam wallets, scam exchanges**: Many people lose BTC by trusting Ponzi schemes and unreliable exchanges.

- **Exchange hacks, wallet hacks**: Even major exchanges have been hacked (Mt. Gox, FTX...), causing significant losses.

### **4. Legal & Market Factors**

- **Government regulations**: Some countries ban or restrict BTC, causing price instability.

- **Macroeconomic influences**: Inflation, FED interest rates, financial crises all affect BTC prices.

### **5. Lack of Knowledge & Strategy**

- Many people invest in BTC without thoroughly researching, leading to **buying high, selling low**.

- No effective capital management strategy, stop-loss, or profit-taking.