In the face of the three highs of Bitcoin, please remain rational

New price highs, new open interest highs, new liquidation highs after a sharp drop

After Bitcoin broke the historical high of $100,000, it sharply dropped to $90,000, creating the largest daily liquidation volume in history, exceeding $500 million

The main reason for this sharp drop is that the open interest also reached a historical peak, with a large number of high-leverage speculators blindly chasing the rise, leading to a vicious cycle of forced liquidations, ultimately resulting in many speculators losing all their capital. High-leverage speculative behavior not only exacerbates market volatility but also highlights the importance of risk control in the market.

In such an extreme market environment, investors should always remain rational and avoid being driven by greed to blindly increase their positions. They can reasonably assess their positions based on market volatility and strictly control risks. Meanwhile, short-term fluctuations should not affect long-term planning. It is recommended that investors adopt quantitative strategies, focus on asset allocation and risk management to cope with the high volatility characteristics of the crypto market. Only with a stable mindset and scientific investment can one remain undefeated in the market.