This week was a week of sharp declines for all currencies except Bitcoin. Eth had a maximum retracement of 30% at 3100. For long investments in contracts with almost double the leverage, all of them went bankrupt. Eth's trading volume on February 3rd even hit a new high since the bear market in 2022.
Other non-mainstream altcoins have returned to the bear market price again. In the past few days, a small number of voices have shouted that the bear market is coming. Now the data indicators seem to need to be adjusted to bear market fixed investment indicators. This week's decline has caused me a lot of reflections. I think it is also a relatively large growth and gain in my investment journey. First of all, since I invested in the currency market, every wave of declines of about 30% every year is quite common. Even at 17.94 and 20.312, it was close to being cut in half in the short term. I remember that there seemed to be several such declines. The only difference this time is that BTC itself did not fall much, while other currencies except Bitcoin fell badly, and this was on the premise that they did not rise much in this wave of market.
Most people in the entire cryptocurrency circle should be looking at this wave of market according to the previous bull market in 2021. I personally also think that this probability is very high. Eth and other currencies broke new highs two months after BTC hit a new high and went out of the bull market. I never thought that Eth would have a big correction two months after BTC hit a new high. I think this correction has a relatively large impact on some people.
The biggest barrier to entry in the investment market is that there is no barrier. The investment market itself is a dynamic evolution. In this circle that has not yet generated value and cash flow, the price game itself is a zero-sum game. When more and more people are bullish, if there is no subsequent increase, the price drop means that it is easier to form a stampede and death spiral until all leverage explodes, creating new fuel for future gains. My view remains the same as before, and I firmly believe that this bull market is still worth looking forward to. As long as it is not a contract leverage, and it is not a heavy position in other currencies besides Bitcoin and Ethereum, the current persistence will definitely bring us good returns in the future.
By observing that Ethereum's trading volume hit a record high on February 3, 720,000 ETH have been flowing out of exchanges exponentially in the past week. By observing the on-chain addresses, it can be seen that the proportion of coins held by the top 100 has been increasing, and chips are constantly concentrated in the hands of large holders.
Let's talk about statistical data indicators. Because the market has been mediocre recently and the data is relatively similar, there was no summary of the data last week. I never thought that 2.3 would usher in a new anniversary in the currency circle. The decline in the past week should make many people feel that other currencies in the currency circle are not worth holding except Bitcoin. I also unconsciously concluded that in the next wave of new layout, Bitcoin must account for at least 60%. However, the statistical data showed a slightly opposite result. Bitcoin has been flowing out for five consecutive weeks, and 50,000 inflows this week. Although eth has fallen more, it has a linear outflow of 720,000. In the future, as the market starts again, many people should replace eth with bitcoin, or carefully configure other currencies to increase their holdings of bitcoin. Each of us is a player in the game, and those who are in the game are confused. If we are wrong, it is very likely that we will make a mistake again based on the new parameter changes.
I started investing in 2017, and survived in both the stock market and the cryptocurrency market. The biggest experience I gained is that you should never use leverage, make contracts, or borrow money to invest. I have seen too many waves of declines, and every wave of declines is a dead thread, with corpses everywhere. The market trend can never be predicted. You don’t need money to hold high-quality assets and spot goods in the long term, such as BTC and ETH in the cryptocurrency circle. Investment is the same in essence. Investment is allocation. No matter what you choose, whether it is government bonds, gold, or houses... To put it bluntly, you think that the probability of future returns is higher. Use cash assets to compare and measure. No matter how high the decline of high-quality assets, Bitcoin and Ethereum in the cryptocurrency circle is, as long as they continue to create higher prices, all the declines in the middle are massages for us, and are to temper us to make us stronger. We should feel and adapt to this market in actual combat. $BTC $ETH
