Just like when housing prices rose well before, some people leveraged to speculate on real estate and made profits,

but they didn't understand the logic behind the price increase, and naively thought that housing prices would continue to rise like before, so they continued to leverage. Later, they couldn't sell their houses, were trapped, couldn't repay their loans, and were completely crushed in life.

For example, in February to March 2024, when cryptocurrency prices rose overall, people thought a bull market had begun, believing they could make money on anything, and indeed made some profits,

but they didn't understand the logic behind the price increase, so they kept increasing their positions. Each time the price dropped a little, they added more, and now they are deeply trapped.

Now, those who see a wave of decline are confidently claiming that a big drop is coming next, similarly being affected by empiricism.

Because through the trends of 2024, they saw that after a wave of price increase, there was a pullback leading to new lows, and every time there was a rise, there was a big drop,

when prices rose at the end of 2024, they thought the current drop was just the beginning, because it hadn’t broken new lows yet, so they felt there would be a big drop.