Why do sharp declines frequently occur during a bull market?

This is mainly because the market needs to undergo severe cleansing.

In a bull market, retail investors have a strong willingness to hold stocks and are quite sticky. If there are no sharp declines, it is difficult to wash them out of the market; sometimes continuous sharp declines are even needed to force most retail investors to sell and exit.

Some may ask, why clean out retail investors?

Isn't it good for everyone to make money together in the crypto space?

In reality, it is not so. Without new funds flowing in, if retail investors are not cleansed, the main players will have to pay a huge capital cost when raising the coin price. Because in the process of raising the price, once retail investors make a profit, they will choose to exit, which greatly increases the resistance for the main players, as if they are 'lifting the sedan chair' for the retail investors.

However, if retail investors are washed out through means like sharp declines, after they cut losses and exit, the main players can not only achieve profits but also facilitate further price increases later.