Although the bull market looks prosperous, have you noticed that there are waves of crashes from time to time? Don't rush; this is not a market collapse, but "washing" is quietly taking place!

🌪️ Why are there frequent crashes in a bull market?

Many friends may ask: "Shouldn't a bull market be all about rising prices? Why are there still frequent crashes?" In fact, these crashes are not market collapses, but rather the market is "cleansing" retail investors!

In a bull market, many retail investors follow the trend to buy in, holding their coins with a particularly strong mentality and high trading stickiness. If a portion of them is not washed out through crashes, the main players will have to spend a lot of capital costs to raise the coin price because retail investors will quickly sell once they make some money, creating immense pressure in the market.

🔥 What does "washing" really mean?

Simply put, the main players use crashes to force retail investors to cut their losses and exit the market. Once these retail investors leave, only the main players with large funds remain in the market, allowing them to easily control the coin price, further increase it, and make substantial profits.

Conversely, retail investors are eliminated in this process and become the "sacrificial victims" of the market.

💰 Why clear out retail investors?

It sounds a bit cruel, but this is the brutal game of the market. Without this wave of "washing", the main players would face tremendous resistance when trying to push up the coin price. Retail investors making a little profit would choose to exit, resulting in the main players' money being "snatched away" by retail investors when they try to increase prices.

Therefore, by clearing out retail investors through crashes, the main players can not only increase their profit margins but also make future price increases smoother.

🎯 To summarize:

So, when you see waves of crashes in a bull market, don't panic. This is likely the market preparing for a wash and for future price increases.

And those steadfast investors who can resist selling often end up earning even more later on.