Weekend News

I only found out about the market's flash crash over the weekend while reading the news.

Regarding the reasons for this flash crash, more serious discussions attribute it to the escalation of conflicts in the Middle East, which has led to a risk-averse sentiment in the market, causing some funds to flee from the crypto market; while more lively discussions suggest that a large holder accused a certain person in charge at Xian of listing coins too frequently, which led to the market being drained.

In my opinion, for investors who are dollar-cost averaging, the significance of such market fluctuations before the bull market arrives is minimal. Because if the dollar-cost averaging strategy is set appropriately, these market ups and downs should not and will not affect any actions taken by the investors.

In this bear market, I set my dollar-cost averaging price for Bitcoin at $35,000 and for Ethereum at $2,500. As long as the price exceeds these levels, I will stop dollar-cost averaging and just observe.

During this flash crash, Bitcoin dropped from about $71,000 to $62,000, a decline of over 10%, but it did not fall below my dollar-cost averaging price. To be more extreme, even if the drop reached 50%, it would only fall to $35,500, still above my dollar-cost averaging price.

Therefore, as long as it does not drop below my dollar-cost averaging price, any decline in the market is meaningless to me.

The decline in Bitcoin is the same as that of Ethereum.

I saw some comments online quoting a picture that mocked a bunch of coins:

For example: TAO is "escape," ENA is "uh," ETHFI is "Ethereum ends"…

If everyone just laughs it off and treats it as humor, that's fine. But if they take it seriously and use it as a tool for emotional venting, then it shows a lack of basic independent thinking and emotional control.

As for these three coins, I won't discuss whether the projects behind them can truly achieve their visions, nor will I say whether they are pseudo-demand. Just talking about the narrative of the sectors they belong to, they will definitely be hot topics in the upcoming bull market. Since they are hot topics, as long as the teams and projects behind them do not encounter major issues, they are likely to be favored in the next bull market. And as long as they are favored, their prices in the bull market will likely not stop at the levels before the flash crash.

Thus, this flash crash is merely a trivial noise for the upcoming bull market, and there is no need to provoke unnecessary worries and fears.

I mention these three coins not to express whether I am optimistic or pessimistic about them, but simply to illustrate how people's attitudes towards them can reflect the sometimes exaggerated irrational emotions of investors.

Such examples are far from limited to these three coins.

Recently, many readers have been asking in comments whether XXX can still be bought?

At this moment, I can address such questions.

If investors are still consistently optimistic about these projects but have been held back by their high prices, now is the time to see if their prices have dropped low enough or to their psychological price levels.

If so, and the projects themselves are sound, isn't this the right time for investors to enter the market?

Even if the prices are still high, at least the market has given us an opportunity to reassess these projects we once favored and patiently wait for the right moment to enter.

From this perspective, investors have even less reason to panic about such declines.

In the past two months, after Bitcoin reached a new high of nearly $74,000, it has experienced two significant adjustments. Many investors who have long believed that the "bull market" has already arrived are now starting to doubt whether the "bull market" will just fade away.

Let's not worry about whether this is a bull market; we should seriously consider a possible extreme scenario:

If, for the next year or even longer, Bitcoin cannot surpass $74,000, do you plan to cut losses and exit, or hold firmly until the next bull market (when both Bitcoin and Ethereum break their previous highs) truly arrives?

If you plan to hold firmly until the next bull market, then in the coming years, in such a bleak economic environment, do you have enough income to sustain your living and ensure you can steadily hold onto these assets?

Regarding this extreme situation, I have previously shared my thoughts: I will not consider selling or cashing out until Bitcoin reaches $100,000.