Everyone knows that BTC will rise in the future, so why would anyone short or sell?

There is a very strange phenomenon in the market, that is, most cryptocurrency investors know that BTC will rise, but why do some people still short and blow up their positions?

In fact, this issue involves many aspects. Generally speaking, short sellers include short-term speculators, miners doing hedging, and investors who know inside information in advance, in addition to investors who are not optimistic about cryptocurrencies in the long term (conceptual issues, similar to Buffett), early investors' profits are pocketed, and some investors need to cash out to subsidize their families and enjoy life. These are all motivations for selling.

The main selling force here is the big guys who manipulate the market by short-term speculators, because although the market is bullish in the long term, it is not necessarily in the short term. There is a combination of currency circle beliefs and market supply and demand. The market tells us that if there is demand, it will naturally rise. When demand decreases, it will naturally fall. The belief in the currency circle will increase demand, making more rises and fewer falls, thus forming market fluctuations.

In addition, for the big dealers, they are the main force of market participation and will not leave the market in the long run. So it stands to reason that they should hold on to their holdings. In fact, they will not be satisfied with this income, because they still need to fight against the influence of larger whales. Therefore, their goal is to make the cost as low as possible and the quantity as high as possible in order to master the market discourse power.

Therefore, if it keeps rising, the discourse power in hand may gradually be lost, so it is necessary to make some downward fluctuations to absorb chips and increase their influence. In the eyes of higher-level whales, there may not be much difference between a few thousand coins and ten thousand coins, because the amount of funds is very large. What they may need is to pursue things other than money, such as honor, etc., before they continue to influence the market.

In short, in simple terms, selling and shorting are actually important means for the main force to maintain its market influence. As for crypto beliefs, people who reach that stage will still live happily even if BTC falls to one thousand US dollars.