Bull market crashes are actually a "washing" strategy? You need to know these insider tips!
Although the bull market seems prosperous, have you noticed that there are occasional crashes? Don’t panic; this is not a market collapse, but rather "washing" is quietly underway!
🌪️ Why do frequent crashes occur during a bull market?
Many of you might ask: "Shouldn't a bull market just keep rising? Why are there still crashes?" In fact, these crashes are not due to a market collapse, but rather the market is "cleaning" retail investors!
In a bull market, many retail investors follow the trend to buy, holding onto their assets strongly, and their trading stickiness is high. If a portion of these people is not washed out through crashes, the main players will have to spend a lot of capital costs when raising coin prices, because once retail investors make a profit, they will quickly sell off, creating immense market pressure.
🔥 What does "washing" actually mean?
Simply put, the main players use crashes to force retail investors to cut losses and leave the market. Once these retail investors are gone, only the main players with large funds remain in the market; they can easily control coin prices, raise them further, and earn huge profits.
Conversely, retail investors are cleared out in this process and become the market's "sacrifices."
💰 Why wash out retail investors?
It sounds a bit cruel, but this is the brutal game of the market. Without this round of "washing," the main players would face tremendous resistance when pushing up coin prices. Retail investors making a little money will choose to leave the market, resulting in the main players' funds being "snatched away" by retail investors when they try to raise prices.
Therefore, by washing out retail investors through crashes, the main players can not only increase their profit margins but also make subsequent rises smoother.
🎯 To summarize:
So, when you see waves of crashes in a bull market, don’t rush to panic. This is likely the market preparing for washing and subsequent rises.
And those steadfast investors who can hold on without selling often earn more in the future.