Why do sharp declines frequently occur during a bull market?

This is primarily because the market needs to undergo a significant shakeout. In a bull market, retail investors have a strong willingness to hold their shares, leading to high stickiness. If there is no sharp decline, it is difficult to flush them out of the market; sometimes even a series of sharp declines is needed to force most retail investors to sell and exit.

Some may ask, why do we need to flush out retail investors?

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

In reality, this is not the case. Without new capital inflows, if retail investors are not flushed out, the main players will have to incur huge capital costs when lifting the coin price. Because during the lifting process, once retail investors make a profit, they will choose to exit the market, which greatly increases the resistance faced by the main players in raising prices, as if the main players are 'carrying the sedan chair' for retail investors. However, if retail investors are flushed out through sharp declines and other means, once they sell at a loss and exit, the main players can not only realize profits but also facilitate further increases in the coin price later on.