During the process of navigating the crypto world, investors will inevitably encounter moments of confusion. At this time, it is particularly important to pause, slow down, and reflect on one's original intentions. What is your purpose for entering the crypto world? Is it for excitement, or do you see it as an investment risk? Or is it because of the difficulties in traditional industries, hoping to turn things around in the cryptocurrency market and improve your life?
Market Review at the End of 2024
Entering 2025, we look back at the last month of 2024. Although Bitcoin closed with a bearish candlestick, it does not affect the strong position of the bulls. Bitcoin broke through historical highs at the end of 2024, and although Ethereum lagged slightly, its bottom structure's stability should not be underestimated. From the fluctuations that began in June 2022 to the breakthrough in October 2023, and then to the stable consolidation around $3,000, each step has been remarkably solid. Despite varying opinions on Ethereum in the market, its performance is tangible. The strategies of the main funds often confuse the market, causing many to overlook Ethereum's potential.
Current Market Games and Strategies
The current market long-short ratio exceeds 2:1, and the contract funding rate continues to rise. If I were the main force in the market, what would I do? I would gradually lower the market's center of gravity through constant up and down pinning. During this process, although I might not make money temporarily, the goal is to send a signal to the market: be cautious, avoid excessive use of high leverage, and it is best to close contract trading to avoid liquidation. In this way, the main force can effectively reduce the overall contract positions while maintaining flexibility, whether in offense or defense.
During this process, the main force will also release some ambiguous messages to entice those investors who are not cautious enough to make mistakes. If high-leverage investors enter the market heavily at this time, the main force will unhesitatingly accept this 'big gift'. Once market sentiment tends to rationality, leverage decreases, and the market returns to normal, the main force may choose to restart the market, pushing prices up.
Investors' Reflection and Action
As an investor, understanding this operational logic of the market is crucial. First, clarify your investment goals and avoid being swayed by the market's short-term fluctuations. Second, remain rational and avoid using excessively high leverage, especially during periods of significant market volatility. Finally, focus on long-term value and invest in projects with solid fundamentals, such as Ethereum, even though its short-term performance may not be as strong as Bitcoin's, its long-term development potential should not be overlooked.
In the crypto world, the ability to acquire and analyze information is equally important. Understanding the latest market trends and technical analysis through various channels can help you make more informed investment decisions. In this uncertain market, only through continuous learning and practice can one find a clear direction in confusion and achieve long-term success in investing.