The excitement level in cryptocurrency is starting to get heated.
People are very excited about a new all-time high on Bitcoin was hit. Ethereum is racing to duplicating that. These are the two biggest cryptocurrencies, at least by market capitalization. Basically, this is a strong statement by the market.
It is not without reason.
The approval of Bitcoin ETFs based upon spot pricing was a huge step forward. We now see a massive amount of buy demand.
We also can sensible presume that, at some point, an Ethereum ETF will be approved. This might happen in a country other than the United States which, in turn, will put more pressure on the SEC.
That said, we need to all calm down.
For years I discussed how a significant portion of the crypto community does not belong in markets. These people are delusional and not in touch with reality.
What do I mean by this?
Simply, the behavior of people makes its obvious that they believe markets should only move in one direction. that is completely insane. Markets move in two directions. This was always the case.
Bull markets are the same as bear markets. Neither is better than the other. Most believe bull markets are preferred since they only "go long". That said, there are a lot of people who make a lot more money by shorting during bear markets.
Sadly, it seems that the drop is usually quicker than the rise.
Here is the reality:
If you believe that a token, coin, or asset can go up 100%, then it can also go down 60%. There is no way to have one without the other.
Thus, it is best to stay in touch with reality.
Another fact: bull markets are followed by bears. These are cycles, just like the seasons of the year. Do you have Summer without Winter?
There is an old saying:
Keep this in mind as we move forward. As prices move higher, the market becomes extended. There is always a breaking point, as markets reflect human psychology.
Since most are apt to "forget" the last catastrophe. We see this all the time in markets, especially among retail investors.
For this reason, be sure to approach this sensibly. Do not buy into the emotions. Separate those out and keep looking at the markets as clearly as possible.
It helps to take some profits along the way. While this might seem counter-intuitive but it is the way to get paid.
Tremendous wealth is going to be generated through Web 3.0 in my opinion. That said, we are dealing with markets.
Keep growing your stake but remember to apply some sound money management principles. It is easy to get sucked into the emotions of markets.
