$BTC The price of bitcoin can be affected by several factors. Here are some reasons that could explain its recent performance:

The Market Can Be Irrational

During a bull market, the market often behaves irrationally. When I say that, I mean that bizarre and illogical trends start to dominate, leading to outcomes that defy common sense. Let me explain with a few examples.

Consider the last bull market, where the NFT craze took over. Digital artworks, like images of cartoon monkeys, were sold for millions despite lacking any tangible value. Similarly, obscure cryptocurrencies, often referred to as "shitcoins," saw their prices soar by 100x in mere days, even though they were built on nothing substantial.

In the current bull market, we're seeing the early signs of this irrational behavior once again. Investors are pouring their money into memecoins that hold no real value, yet there’s a widespread bullish sentiment around them. Some individuals have even risked their entire portfolios on these speculative assets and are now facing significant losses. Over the past weeks, I’ve received numerous messages from people who have come to realize that following the advice of influencers promoting these trending coins is a recipe for financial disaster.

This is what I mean when I say the market can become irrational: illogical decisions are made, and foolish investments are rampant.

Thankfully, corrections during bull markets serve as a reality check for these overzealous investors. After experiencing a significant loss, many begin to understand the importance of a more rational approach to investing. It’s unfortunate, but often necessary—sometimes it takes a hard lesson to truly grasp the importance of protecting your capital rather than blindly chasing profits.

My hope is that some of you will take this advice to heart and approach your investments with caution. Remember, the goal isn’t just to make money, but to safeguard what you have.

Thank you for reading and considering this perspective. If you found this post helpful, please like, comment, share, and subscribe—it helps me out a lot.

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