Why do sudden crashes often occur during a bull market?
This is mainly because the market wants to "shuffle" through a sharp decline.
During a bull market, many retail investors hold on tightly and if there isn't a significant drop, it becomes difficult to make them sell their shares. Sometimes, consecutive large drops are needed to prompt most retail investors to finally choose to exit the market.
You might ask, why get rid of retail investors? Isn't it good for everyone to make money together in the crypto space?
In fact, when there isn't new money flowing in, if there are too many retail investors, the main players will struggle to push up the prices.
Because as soon as retail investors see profits, they might sell right away, forcing the main players to spend more money to "hold up" the price, essentially helping retail investors "carry the sedan chair".
However, if retail investors are shaken out through a significant drop, and they sell off their assets, the main players can make money more easily, and afterward, they can push prices up more effortlessly.
Therefore, the crashes in a bull market are often a result of retail investors "holding on too tightly".
As a result, if not handled properly during a bull market, retail investors may end up losing even more.
