No matter how pessimistic you are about the market outlook, don't short sell. In the past 40 years, there have been three times when the VIX exceeded 60 in the U.S. stock market. One was in 2008, one was in 2020, and one was a few days ago. Both times in 2008 and 20 were close to the absolute bottom, and everyone knows what happened afterwards.
This year, the crypto market is still in its first year of listing, which is what Lao Fu has emphasized many times in historical articles. At that time, he judged that it was only a matter of time before domestic interest rate cuts and reserve requirement ratio cuts would stimulate the economy. Sure enough, with the implementation of the policy, the A-share Shanghai Composite Index recovered three months' losses in just three days.
After each round of loose money printing by the central bank, the prices of financial assets will be pushed up, inducing ordinary people to invest resources and creating bubbles; after the bubble bursts and people go bankrupt, the central bank can print money at zero cost to re-harvest people's resources, and this cycle will repeat itself.
But we cannot deny that there are a lot of opportunities in the bubble. Those who have experienced the previous rounds of bull markets will understand that the market is currently in a stage of compensatory growth. ETH/DOGE/SHIB, PEPE/etc. It is obvious that the market is not lacking in liquidity, and most people holding chips will not miss this feast. (The recent rebound of A-shares, Lao Fu was worried that it would divert liquidity in the cryptocurrency circle) but it turned out that it did not have much impact on the cryptocurrency circle) It shows that the strength of this bull trend is quite strong.
Keep an objective view of the market.
It is only a matter of time before the Bitcoin and Ethereum trend enters the main uptrend. By then, Ethereum will rise by 200-400 points a day, and there will also be phenomena and copycat trend coins, such as DOGE/SHIB in 2021 and GAS in 2023. This is when FOMO emotions really break out. When the main uptrend cycle comes, the profit margin will shrink and the risk will increase. The only constant in the financial market is that risk and return are always proportional. $BTC
