Andrew Kang: The current market reminds me of May 2021, we have become accustomed to only rising and not falling
In front of the market, you must remain humble.Original source: Andrew Kang X account
Author: Andrew Kang
Compiled by: Shenchao TechFlow
I am starting to realize that this is the first cycle and complete bull market for many people, which is surprising.
Throughout the bull market, BTC's multi-day decline has been extremely limited, around 20%, and many seem to have leveraged up during the last adjustment in April.
However, in the previous cycle, we often saw a shrinkage of leverage, leading to a 30-60% contraction, collectively losing hundreds of billions of dollars.
Different cycles, different patterns, but when people become too complacent, thinking that nothing can happen, it is usually when disaster strikes.
While I am bearish, this is not to tell you to short the market or sell everything in the market. Just make sure to pay attention to the risks and do not put all your bets on one trade; if our trend exceeds expectations, that trade could lead to significant losses.
Having reserves of optional value is limitless.
A reader's private message chat with Andrew Kang
The current market environment reminds me of May 2021, not actually June 2021, and definitely not December 2020.
We have become accustomed to only rising and not falling; all declines are for bidding, and are turbo reversed. We experienced a significant adjustment from 64,000 to 45,000, with everyone buying in, expecting the same pullback to happen. But what ultimately occurred was a continuous decline. We were hopeful: more retail investors were about to come; $40,000 was a strong support; super cycle, etc.
The current environment is similar, with still 9-10 months to go before the bullish momentum begins. This time, it’s the Ethereum ETF, with legendary traders calling for higher prices. I believe GCR's view over a span of years is correct, and we will see new highs for Bitcoin in 2025 (but not for all altcoins). However, this does not mean we won't see extreme corrections within a month.
In front of the market, you must remain humble.
