In the fantasy world of financial investment, Bitcoin is like a "star" that has emerged out of nowhere, attracting the attention of countless people. When the news of Bitcoin halving and the passing of ETF spot came, the entire cryptocurrency field was instantly boiling, as if a grand and luxurious carnival party had begun. People rushed in with a fervent desire for financial freedom, thinking that they were about to embark on the road to easy wealth.

However, when the lively hustle and bustle gradually dissipated, the cruel and cold reality was ruthlessly placed in front of us: in this seemingly prosperous bull market, the vast majority of investors were actually trapped in the quagmire of losses, struggling but unable to get out. What is going on? As a relatively large group of retail investors, how should they deal with it to avoid losses and even achieve profits? Next, let us unveil this mysterious and cruel veil together.

Once upon a time, the Bitcoin market was a "small world" for retail investors. With limited experience and intuition, everyone explored and moved forward in this new field, and occasionally gained some unexpected surprises. But now is different from the past. Today's Bitcoin market has long become the "main battlefield" for institutional investors.

According to data from the OKEx Research Institute, from the passage of the Bitcoin spot ETF to March 8, 2024, the total amount of funds that have flowed into the market through the BTC spot ETF alone has reached US$9.594 billion, with a total net inflow of approximately 176,396 BTC. These institutions have strong funds and professional investment research teams, just like hunters lurking in the dark, carefully laying out. When the price of Bitcoin is relatively low, they quietly hoard a large amount of goods and patiently wait for the opportunity. When the market heats up, ordinary investors are tempted by the rising prices and follow suit, but institutions may have quietly prepared to harvest.

This is like a contest of great disparity in strength. Institutions are wearing professional equipment and moving steadily along the planned route, while retail investors are wearing simple "straw sandals" and rushing on the chaotic track. The result is self-evident. Under such a market structure, it is not surprising that retail investors have become the main force of losses in the bull market.

In the hot and almost crazy atmosphere of the bull market, investors' psychological and behavioral deviations are infinitely magnified and become the key factor leading to losses. When the price of Bitcoin soared all the way, greed quickly occupied the hearts of investors like a demon. Many people fantasized about getting rich overnight, so they desperately invested a lot of money in it, and even used high leverage to try to get the biggest share of this wealth feast.

However, market changes are always unexpected. Once there is even a slight callback, fear will instantly swallow them. In a panic, they hurriedly sold their Bitcoins, resulting in serious losses.

Taking the market situation after the approval of the Ethereum spot ETF on May 24, 2024 as an example, according to Coinglass data, within the next 24 hours, the number of people who had their positions liquidated in the virtual currency market exceeded 110,000, and the total amount of liquidation reached US$399 million (approximately RMB 2.9 billion), of which US$303 million was liquidated in long orders and US$95.65 million was liquidated in short orders. From 15:00 Beijing time on the same day, Bitcoin fell below three important thresholds of US$70,000, US$69,000, and US$68,000 in succession. Those investors who bought Bitcoin in the early morning of the same day due to optimism suffered heavy losses in a short period of time, and the loss of buying one Bitcoin was as high as RMB 21,731. This behavior of chasing ups and downs not only made investors fail to make money in the bull market, but also lost all their money.

The cryptocurrency market is a "big dye vat" of information, with true and false news overwhelming. During the bull market, various good news came in like a tide, and there was no lack of false information deliberately spread by people with ulterior motives to mislead investors. Ordinary investors are easily led by these false news due to their lack of professional information screening ability. Even when faced with real information, they often cannot correctly understand its impact on the market due to cognitive limitations.

For example, some news about Bitcoin technology upgrades may appear to be major positives on the surface, but in fact, the market's expectations may have been digested in advance, or there may be unknown potential risks in the upgrade process, which ultimately led to a decline in Bitcoin prices. However, investors made blind investment decisions due to misinterpretation of this information, thus suffering losses.

(I) Before investing: Lay a solid foundation, know yourself and the enemy, and learn knowledge in depth

Before preparing to step into the field of Bitcoin investment, investors must abandon their impetuous mentality and calm down to study Bitcoin's underlying technology, market operation mechanism, and relevant laws and regulations. You can gradually build your own knowledge system by reading professional books, attending formal training courses, and paying attention to authoritative industry information.

Only by having a deep understanding of the investment object can you have a clear mind in investment and not blindly follow the trend. To assess risk tolerance, you need to make a comprehensive and objective assessment of your financial situation and risk tolerance. Don't invest all your savings in high-risk investments such as Bitcoin. You should plan your investment proportion reasonably according to your actual situation. For example, you can use part of the funds for stable investment to ensure the basic guarantee of life, and then take out a small part of the funds for risky investments such as Bitcoin. Even if the investment loses money, it will not cause a devastating blow to your life.

(II) During the investment process: stay rational, strictly abide by the strategy to control emotions and behaviors

In the investment process, it is crucial to stay calm and rational. Always be vigilant against the emotional interference of greed and fear, and avoid chasing ups and downs. You can use the method of fixed investment to buy Bitcoin regularly and in fixed amounts. This method can not only avoid the risks brought by investing too much money at one time, but also effectively spread the cost in the ups and downs of the market.

For example, investing a fixed amount of money to buy Bitcoin every week or every month, regardless of the price, can effectively reduce the impact of market fluctuations on investment costs if you stick to it for a long time. Formulate and implement strategies. You need to formulate a scientific and reasonable investment strategy and strictly implement it. You cannot be swayed by short-term market fluctuations and various hot news. At the same time, you should pay close attention to market dynamics, but do not over-interpret short-term price fluctuations. You should learn to analyze market trends from a macro perspective and grasp the general investment direction.

For example, pay attention to factors such as the long-term development trend of Bitcoin, market supply and demand, and macroeconomic environment, rather than just focusing on daily price fluctuations. In addition, it is also crucial to choose a formal and safe trading platform. Only in this way can you ensure the safety of your funds and avoid losses due to platform problems.

(III) After investment: continue to pay attention and adjust the regular review summary in time

After investment, you cannot relax your vigilance. You should develop a good habit of regular review and conduct a comprehensive review and analysis of your investment operations. Summarize the experience of each successful investment and the lessons of failure to see which operations are correct and which need to be improved. Through review, you can continuously optimize your investment strategies and methods and improve your investment level. Pay attention to market changes. We should continue to pay attention to the technological development and policy changes in the Bitcoin market, because these factors may have a significant impact on the market. For example, Bitcoin's technological upgrades may affect its performance and market competitiveness, and the adjustment of various countries' policies may change the market's regulatory environment and investment atmosphere.

Only by keeping up with the times and keeping abreast of the latest market trends can we be invincible in this ever-changing market.

In short, the Bitcoin market is like a turbulent sea. Although the bull market seems to bring unlimited opportunities, the hidden risks are equally huge. Behind this carnival, the reality that most investors are deeply trapped in the quagmire of losses has sounded the alarm for us.

As retail investors, only by constantly improving their knowledge and skills, overcoming their own psychological weaknesses, and strictly following scientific investment methods can we find our own way of survival in this challenging market, avoid becoming a victim of being swallowed by the market, and achieve the transformation from loss to profit. Let us use reason and wisdom as our boat, move forward steadily in the ocean of Bitcoin investment, and sail to the other side of wealth. I hope everyone can get what they want in their investment in 2025. I wish everyone great wealth in 2025! !

In the fantasy world of financial investment, Bitcoin is like a "star" that has emerged out of nowhere, attracting the attention of countless people. When the news of Bitcoin halving and the passing of ETF spot came, the entire cryptocurrency field was instantly boiling, as if a grand and luxurious carnival party had begun. People rushed in with a fervent desire for financial freedom, thinking that they were about to embark on the road to easy wealth.

However, when the lively hustle and bustle gradually dissipated, the cruel and cold reality was ruthlessly placed in front of us: in this seemingly prosperous bull market, the vast majority of investors were actually trapped in the quagmire of losses, struggling but unable to get out. What is going on? As a relatively large group of retail investors, how should they deal with it to avoid losses and even achieve profits? Next, let us unveil this mysterious and cruel veil together.

Once upon a time, the Bitcoin market was a "small world" for retail investors. With limited experience and intuition, everyone explored and moved forward in this new field, and occasionally gained some unexpected surprises. But now is different from the past. Today's Bitcoin market has long become the "main battlefield" for institutional investors.

According to data from the OKEx Research Institute, from the passage of the Bitcoin spot ETF to March 8, 2024, the total amount of funds that have flowed into the market through the BTC spot ETF alone has reached US$9.594 billion, with a total net inflow of approximately 176,396 BTC. These institutions have strong funds and professional investment research teams, just like hunters lurking in the dark, carefully laying out. When the price of Bitcoin is relatively low, they quietly hoard a large amount of goods and patiently wait for the opportunity. When the market heats up, ordinary investors are tempted by the rising prices and follow suit, but institutions may have quietly prepared to harvest.

This is like a contest of great disparity in strength. Institutions are wearing professional equipment and moving steadily along the planned route, while retail investors are wearing simple "straw sandals" and rushing on the chaotic track. The result is self-evident. Under such a market structure, it is not surprising that retail investors have become the main force of losses in the bull market.

In the hot and almost crazy atmosphere of the bull market, investors' psychological and behavioral deviations are infinitely magnified and become the key factor leading to losses. When the price of Bitcoin soared all the way, greed quickly occupied the hearts of investors like a demon. Many people fantasized about getting rich overnight, so they desperately invested a lot of money in it, and even used high leverage to try to get the biggest share of this wealth feast.

However, market changes are always unexpected. Once there is even a slight callback, fear will instantly swallow them. In a panic, they hurriedly sold their Bitcoins, resulting in serious losses.

Taking the market situation after the approval of the Ethereum spot ETF on May 24, 2024 as an example, according to Coinglass data, within the next 24 hours, the number of people who had their positions liquidated in the virtual currency market exceeded 110,000, and the total amount of liquidation reached US$399 million (approximately RMB 2.9 billion), of which US$303 million was liquidated in long orders and US$95.65 million was liquidated in short orders. From 15:00 Beijing time on the same day, Bitcoin fell below three important thresholds of US$70,000, US$69,000, and US$68,000 in succession. Those investors who bought Bitcoin in the early morning of the same day due to optimism suffered heavy losses in a short period of time, and the loss of buying one Bitcoin was as high as RMB 21,731. This behavior of chasing ups and downs not only made investors fail to make money in the bull market, but also lost all their money.

The cryptocurrency market is a "big dye vat" of information, with true and false news overwhelming. During the bull market, various good news came in like a tide, and there was no lack of false information deliberately spread by people with ulterior motives to mislead investors. Ordinary investors are easily led by these false news due to their lack of professional information screening ability. Even when faced with real information, they often cannot correctly understand its impact on the market due to cognitive limitations.

For example, some news about Bitcoin technology upgrades may appear to be major positives on the surface, but in fact, the market's expectations may have been digested in advance, or there may be unknown potential risks in the upgrade process, which ultimately led to a decline in Bitcoin prices. However, investors made blind investment decisions due to misinterpretation of this information, thus suffering losses.

(I) Before investing: Lay a solid foundation, know yourself and the enemy, and learn knowledge in depth

Before preparing to step into the field of Bitcoin investment, investors must abandon their impetuous mentality and calm down to study Bitcoin's underlying technology, market operation mechanism, and relevant laws and regulations. You can gradually build your own knowledge system by reading professional books, attending formal training courses, and paying attention to authoritative industry information.

Only by having a deep understanding of the investment object can you have a clear mind in investment and not blindly follow the trend. To assess risk tolerance, you need to make a comprehensive and objective assessment of your financial situation and risk tolerance. Don't invest all your savings in high-risk investments such as Bitcoin. You should plan your investment proportion reasonably according to your actual situation. For example, you can use part of the funds for stable investment to ensure the basic guarantee of life, and then take out a small part of the funds for risky investments such as Bitcoin. Even if the investment loses money, it will not cause a devastating blow to your life.

(II) During the investment process: stay rational, strictly abide by the strategy to control emotions and behaviors

In the investment process, it is crucial to stay calm and rational. Always be vigilant against the emotional interference of greed and fear, and avoid chasing ups and downs. You can use the method of fixed investment to buy Bitcoin regularly and in fixed amounts. This method can not only avoid the risks brought by investing too much money at one time, but also effectively spread the cost in the ups and downs of the market.

For example, investing a fixed amount of money to buy Bitcoin every week or every month, regardless of the price, can effectively reduce the impact of market fluctuations on investment costs if you stick to it for a long time. Formulate and implement strategies. You need to formulate a scientific and reasonable investment strategy and strictly implement it. You cannot be swayed by short-term market fluctuations and various hot news. At the same time, you should pay close attention to market dynamics, but do not over-interpret short-term price fluctuations. You should learn to analyze market trends from a macro perspective and grasp the general investment direction.

For example, pay attention to factors such as the long-term development trend of Bitcoin, market supply and demand, and macroeconomic environment, rather than just focusing on daily price fluctuations. In addition, it is also crucial to choose a formal and safe trading platform. Only in this way can you ensure the safety of your funds and avoid losses due to platform problems.

(III) After investment: continue to pay attention and adjust the regular review summary in time

After investment, you cannot relax your vigilance. You should develop a good habit of regular review and conduct a comprehensive review and analysis of your investment operations. Summarize the experience of each successful investment and the lessons of failure to see which operations are correct and which need to be improved. Through review, you can continuously optimize your investment strategies and methods and improve your investment level. Pay attention to market changes. We should continue to pay attention to the technological development and policy changes in the Bitcoin market, because these factors may have a significant impact on the market. For example, Bitcoin's technological upgrades may affect its performance and market competitiveness, and the adjustment of various countries' policies may change the market's regulatory environment and investment atmosphere.

Only by keeping up with the times and keeping abreast of the latest market trends can we be invincible in this ever-changing market.

In short, the Bitcoin market is like a turbulent sea. Although the bull market seems to bring unlimited opportunities, the hidden risks are equally huge. Behind this carnival, the reality that most investors are deeply trapped in the quagmire of losses has sounded the alarm for us.

As retail investors, only by constantly improving their knowledge and skills, overcoming their own psychological weaknesses, and strictly following scientific investment methods can we find our own way of survival in this challenging market, avoid becoming a victim of being swallowed by the market, and achieve the transformation from loss to profit. Let us use reason and wisdom as our boat, move forward steadily in the ocean of Bitcoin investment, and sail to the other side of wealth. I hope everyone can get what they want in their investment in 2025. I wish everyone great wealth in 2025! !