August 5th is another date that will be recorded in the history of cryptocurrencies. After a series of declines, Bitcoin suffered another setback, falling more than 10%, while Ethereum plunged 20%, which was as severe as the black swan events of 312 and 519 in history. Such days always appear several times in the market every year, making people feel that cryptocurrencies are going to die.

But in fact, what really crushes investors is often not the facts of the market itself, but the bad emotions that come with it. The accelerated decline of the market has emptied all leverage and contracts, leaving many people who use leverage at great risk. In this game, the winners are often those who can stay calm and not be swayed by emotions.

For those who only trade spot, although the market decline has brought losses, at least the assets still exist, while leveraged traders will face the risk of losing everything if they encounter a liquidation. In this market fluctuation, most long positions have been liquidated, and what is needed now is to wait patiently for the bottom of the market to appear so that they can bottom out again.