Just like when housing prices were rising well before, some people leveraged to speculate on real estate and made money,
but they didn't understand the logic behind the price increase and naively thought that housing prices would continue to rise like before, so they kept leveraging, and later on, when they couldn't sell their houses and were trapped, they couldn't repay their loans, which completely crushed their lives.
For example, in February-March 2024, when cryptocurrency prices overall rose well, they thought a bull market had begun, and that anything they bought would make money. They indeed made some profits,
but they didn't understand the logic behind the price increases, so they kept increasing their positions. Every time there was a slight drop, they added more, and now they are completely trapped.
Now, those who see a drop and confidently say that there will be a significant decline next are also being influenced by empiricism.
Because they observed the trends in 2024, seeing that after a wave of price increases, there was a correction followed by new lows, every time there was an increase followed by a significant drop,
when the market rose at the end of 2024, they thought the current drop was just the beginning, because it hadn't broken new lows yet, so they believed there would be a major decline.