Today's 2 Thoughts:

1. What is the operating pattern of BTC?

My own view is based on the grand narrative of the main funds continuously accumulating at the bottom, selling at the top, and continuing to accumulate at the bottom, repeatedly harvesting the wealth of players in the financial market during the rise and fall processes.

Have you ever thought about why the operators have a continuous stream of funds to drive the market? Because they can not only make money by going long on contracts at the bottom but also continue to make money by going short at the top. Because they determine the trend and direction, they almost always make a profit when they act.

Why this sudden contemplation? It’s because in the past six months, I've noticed that after the main operators sell off, the market peaks and then slowly declines for a few months, followed by accumulation at the bottom before starting the next round of market movement, and then after they sell off again, a significant correction occurs.

Every time the market rises, the operators can continuously earn multiple profits. Even though BTC's market value is getting larger, there is still ongoing upward momentum and funding. Coupled with the narrative and monetary application of BTC being unprecedented, it can continuously attract funds.

One assumption is that if financial derivatives like contracts did not emerge, the market value of BTC might not be able to rise anymore. Contracts allow the operators to amplify their returns by several times and can similarly amplify the losses of retail investors.

The essence of the market is the game between the main operators and retail investors, where money flows from the cash-strapped retail investors to the well-funded operators.

2. What are contracts?

The essence of contracts is volatility. If you bet on the right direction and control your position to withstand volatility, you can continuously make money, but the premise is that the direction must be correct, which stumps 90% of people.