In November 2022, a prevailing pessimism gripped the global economic community. Economists worldwide found themselves adopting a cautious stance, with many refraining from making investments. Even enthusiasts of cryptocurrency hesitated, holding out for more favorable prices, typically around $10,000. Some individuals did make purchases when prices hit rock bottom, although these transactions were relatively minor. These investors subsequently sold their holdings when prices surged to $25,000, feeling content with their profits. Others opted to reduce their exposure by selling half of their assets at a loss, retaining cash in anticipation of further market declines. The prevailing atmosphere of negativity was exacerbated by economists on social media and television, who consistently warned of potential catastrophes, such as impending global conflict and inflation concerns. Such messages attracted significant attention, particularly from individuals still reeling from the market crashes earlier in 2022.
Meanwhile, a quiet accumulation phase began as some astute investors recognized opportunities amidst the market turmoil. As liquidity dwindled and trading volumes remained low, the ability to execute significant transactions became increasingly challenging.
Towards the end of 2023, the market experienced an unexpected surge. Despite initial skepticism from some social media economists, who downplayed the significance of the rally, sentiments began to shift. With each subsequent price increase, the prevailing negativity diminished, giving way to a growing enthusiasm for investing in BTC. This momentum persisted, leading many to believe that the best investment opportunities had already passed.
As negative sentiments gave way to growing enthusiasm for investing in BTC, how important is it for investors to remain adaptable in their outlook and strategies to capitalize on emerging trends?
Monstralian
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@MyCryptoParadise, It's crucial for investors to recognize two key phases: when people are fed up and angry about investing, and when they're super excited. During the angry phase, the big players are quietly accumulating from those who are selling out of frustration, even if it's just a little bit, and often at a loss. But when enthusiasm kicks in, everyone's jumping into the market, making it easier to sell shares. That's the time to consider selling.
behdark
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Where should we set the loss limit?
Monstralian
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@behdark, My investment strategy tells me that I shouldn't start investing in BTC at current prices.