In a bull market, sharp declines occur frequently, driven by a series of market operations. Firstly, the market needs to create 'washout' through severe fluctuations—this means clearing out retail investors. Since retail investors generally have a strong willingness to hold their stocks and exhibit high stickiness, they are often reluctant to easily sell their assets; thus, a sharp decline is needed to force them to sell. In fact, sharp declines sometimes need to happen repeatedly to effectively wash out most retail investors.

So, why wash out retail investors? Many might think that it’s better for everyone to make money together, right? But from the perspective of market leaders, the situation is not so simple. Without new funds flowing in, if retail investors are not washed out, the main players will face huge financial pressure when trying to push up the coin price. Once retail investors make a profit, they often choose to sell, which causes the main players to continually encounter selling pressure during the upward process, increasing costs, almost like they are 'carrying the sedan chair' for retail investors.

Therefore, after washing out retail investors through sharp declines and other means, the market will become clearer. The main players can continue to drive the coin price up without the interference of retail investors, and without selling pressure, subsequent upward movements will be smoother. This operation helps the main players gain a larger profit margin and provides better upward space for future market trends. #加密市场回调 $BTC