Re-examine the entire crypto market over the past five months and think calmly.
1/. Insufficient market liquidity. During this period, the market continued to fluctuate, and ETH fluctuated by hundreds of points within a day. Compared with mature financial markets, crypto obviously had liquidity crisis in the field. The dealers and institutions filled the pool, but fewer people came to swim.
2/. The proportion of market participants holding long positions was higher than the proportion of those holding short positions. It will lead to increased risks. Go and see the kols who provide emotional value in the Chinese area of x. Didn’t you find that every time the stock plummeted, there would be a lot of wailing and liquidation on x, but every time it rose, there was a sweet atmosphere on x. Crypto, however, gradually became immune to "expectations" and news, and trading was against human nature.
3/. The world's geopolitical situation has become tense, and various countries are facing economic and financial crises. Take the United States as an example. It is facing high inflation, tight monetary policy, the US debt crisis, and the labor force participation rate has not yet returned to the pre-epidemic level, causing the bubble to burst.
Looking at crypto again, I want to see it from the essence.
Back to the simplest question, how many people are willing to invest in crypto? In which age group does wealth gather nowadays? People in this age group will invest in CRT, not only for financial management but also as a safe-haven asset? Will the next age group with wealth gather pay for crypto?
Taking our country as an example, at this stage, most of the wealth is concentrated in the 60s-80s. This part of the understanding of crypto is relatively stereotyped, and it can be said to be resistant. So in the next 20 years, will people with wealth gathered in the 85s-00s pay for crypto? Inject new blood?
There are actually traces of the plunge. It's just that most investors are easily disturbed by factors outside the market, so they can't make more rational judgments.
