If you cannot accept a 60% plunge, you are not eligible for a 6000% increase
Digital currency has been a new thing of globalization since its birth. Bitcoin first became popular in overseas geek circles, and then it was introduced into my country.
Therefore, every bloodbath in the circle is not only a great test for domestic investors, but also a great test for overseas investors.
In the face of this sharp drop, overseas investors are also shrouded in fear and sadness, but there are also firm believers overseas to encourage and support everyone.
Next, I will continue to share with you an article by an overseas senior investor. The following is my translation and understanding of this article:
In the past two weeks, digital currencies have experienced a historically horrific plunge.
From heaven to hell ----- Bitcoin was shaved off 50% of its market value, from $60,000 to $30,000. All this happened in 11 days. And within those 11 days, it lost another 34% ($15,500) in one of those 24 hours!
At the same time, Ethereum's plunge was even more tragic. Within 11 days, it lost 60% of its market value, from a maximum of $4,384 to a minimum of $1,734.
why?
why?
The simplest reply is: the price will fall as much as it rises.
At the bottom of the plunge, the price of Ethereum was back to where it was 53 days ago, on March 29. And now (note: this refers to May 25 when the author wrote this article) its price has returned to 28 days ago. Bitcoin fell all the way back to the price it was 110 days ago.
If we get lost in the two-week chart, we lose our sense of direction, but if we lift our heads up and look at the larger, longer-term price chart, we see that this plunge seems to be As expected.
Bitcoin and Ethereum cannot go up all the time.They will change in response to changes in the macro environment. Judging from the long-term trend chart, this plunge is normal.
I think of two old sayings in the investment market:
The first is: Bulls have to get over fear. In a bull market, every drop, especially a sharp drop, always makes investors anxious. They are worried that they will fall even worse tomorrow? And when we have managed to accumulate slow and small gains time after time, the market may ruthlessly wipe out all these achievements in one day.
The second is: the steps seem to rise, and the elevator seems to plummet. In other words, when the market goes up, it always goes so slowly and takes so long, but when the market goes down, it comes so fast and violently like a storm.
This looks really scary, but digital currency is like this, the rise and fall are so asymmetrical, and the rhythm is so different. It took 150 days for Ethereum to go from $700 to $4,300, but it took only 2 weeks to drop to $2,650.
This is violence, no one is spared, it tests everyone's confidence.
We have to learn to live with pain.
An ideal investor should be calm, thoughtful, and unaffected by emotions.
But we are human and we have feelings. We spend our hard-earned money on Bitcoin, Ethereum, and then watch them ebb and flow in the market in horror.
In the traditional investment market, we can take 5% to 15% of the annual income, of course we can take it calmly; but in the digital currency market, we can earn 5% to 15% of the income just by reading an article. It's hard to get peace of mind.
I'm sure you've had a lot of excitement over the past few months, but it's been an excruciating week, and that's normal. Suffering is inevitable.Because you enjoy the excitement when the market rises, you must bear the pain when the market falls.
If you can't bear a 60% plunge, you are not eligible to reap a 6000% surge.
If you can't bear a 60% plunge, you are not eligible to reap a 6000% surge.
