2026-01-03 06:25:24

Looking at ETH, Bitcoin, or those small altcoins, the market operation has its intrinsic logic. Recently, the traders who frequently open long and short positions in the square actually reflect the differences in cognition among various participants.

The accumulation of wealth is both a transformation of energy and requires certain market opportunities. Many people in the crypto circle behave like gamblers, lacking a true understanding of market cycles.

Here's an interesting comparison—gold fell from 458 to 428, with a market value evaporating by 20 trillion. Meanwhile, injecting just 2 trillion or 5 trillion into the cryptocurrency market can easily drive the entire market significantly higher. This reflects the huge difference in liquidity and capital sensitivity between the two markets. The market depth in the crypto world is far less than in traditional finance, and the impact of the same amount of capital here is on a completely different scale. This is the key to understanding cryptocurrency price volatility.

ETH0,71%

BTC0,64%

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BridgeJumper

· 14h ago

That's right, the crypto world is like a magnifying glass; small amounts of money can cause big waves. --- The group that frequently opens long and short positions is probably just gambling mentality, there's really no significant difference in understanding. --- Poor liquidity hits hard; our market is just that fragile. --- Compare gold and the crypto market? Market depth is simply not the same thing. --- So ultimately, you still need to understand cycles; otherwise, you're just gambling. --- That's why large funds can directly dump or pump the market when they come in; the crypto world is too shallow. --- Difference in understanding? I think most people aren't even aware that they're gambling. --- Two trillion coming in and the market takes off immediately; traditional finance is far behind. --- Market logic does exist, but most traders simply can't see it. --- The fragility of the crypto market is obvious; this is where the risk lies.

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FundingMartyr

· 01-05 00:48

Frequent long and short positions are playing with fire. With such shallow market depth, even small funds can cause waves. This is the fate of the crypto world.

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BearWhisperGod

· 01-03 06:52

Basically, it's that the crypto circle's market cap is too shallow; even a slight breeze causes upheaval. That's the real truth.

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NoStopLossNut

· 01-03 06:52

That's right, it's just the difference in liquidity. That's how the crypto world operates, shallow. With more gamblers, perceptions can't keep up; everyone just wants quick money. The methods used in the gold market simply don't apply here; the scale is completely different. I just don't understand those who frequently open long and short positions, yet they still end up losing quite happily. Only by thoroughly understanding the cycle can one survive longer, but unfortunately, too many lack the insight.

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MerkleMaid