Many people ask: Is it okay to clear out the inventory now?

The cryptocurrency market has experienced significant fluctuations recently, and last night it experienced another "big purge." I believe that many people's positions have been liquidated again, and their account balances have returned to zero.

From the essence of the matter, there are no major geopolitical events except the collapse of the Assad regime. The real reason is that the three major US stock indexes generally fell, and Nvidia's stock price also fell by 2.5%, which had a great impact on the stock market. Previously, China's antitrust agency also announced that it had begun an investigation into Nvidia. In addition, China is also increasing its sanctions on Nvidia. Coupled with the tariff policy of the Trump administration in the United States, China has also begun to counterattack, and the trade war has escalated, and there has been no shortage of financial wars.

Before the risk comes, many people think that what you say about bears is damaging to the market, especially when Bitcoin was once around 100,000, and the drop was significant, leading many to believe Bitcoin would continue to rise. However, in reality, although Bitcoin seems to have dropped a lot this time, it is actually the altcoins that are the hardest hit. Many mistakenly believe it is Bitcoin's 'explosive leverage' effect, thinking that altcoins will continue to rise, but in reality, altcoins have bled heavily.

It’s now clear that this drop happened because the coin price rose too quickly; the market needs to shake out weak hands. Often, the logic behind sharp declines in a bull market is: without a sharp decline, retail investors won’t sell at a loss. During this time, the market makers like to frequently spike prices, pull up, and drop, with no pattern, simply to attract more people into the market and harvest the money from both shorts and longs.

So, everyone should calm down first and wait until Trump is in office to make a decision. Although retail investors find it hard to refrain from trading, if you hold on, here’s a life-saving suggestion: set a stop-loss order and trade quickly.

What if you insist on liquidating?

If you plan to liquidate and exit now, it’s understandable, but if you still want to continue trading, liquidating may not be suitable.

From both short-term and long-term perspectives, liquidating Bitcoin is not a wise choice. The long-term trend of Bitcoin is relatively stable, and once you liquidate, you may miss many opportunities.

From a few months' perspective, liquidating altcoins is also not advisable. Liquidating during a bull market often leads to a trap. For example, if you liquidated in early April, you might have the opportunity to re-enter in the following months, but you could also end up liquidating again. This is essentially a matter of investment habits. If you misjudge after liquidating, you might fall into the trap of chasing highs, or watch others profit while you remain in cash. If you then decide to short, you may ultimately suffer greater losses, or even go to zero.

Liquidating in the middle of a bull market is usually a big trap. The trend in a bull market is often characterized by volatile rises and does not increase instantly. The market will definitely have corrections, and market makers are just 'playing tricks'; I am not worried at all.

Opportunities abound, just manage your positions well.

What the crypto world lacks the least is opportunities. If you really can’t help but want to buy coins, you must manage your positions well. Personally, I would control my position to a maximum of about 30%, leaving enough bullets to add to positions when the market hits a low.

The market has corrected all day today, and many partners' profits have been wiped out, or even trapped. If the correction lasts a week, others’ earnings may have doubled while you might just be breaking even.

Therefore, I still want to remind everyone: no matter when, always leave some bullets. Missing opportunities is always better than being trapped. If you are optimistic about certain coins, don’t panic during market corrections; instead, it’s a good opportunity to add to your positions, just seize the opportunity.

Today's article ends here. Welcome to come and play together on the homepage~

Investment carries risks. The above content is all personal sharing and does not constitute investment advice!