As long as you go on the spot market, can you regain liquidity?
It sounds like giving advice to bn, but essentially it's about finding liquidity for your own chips to exit.
Going on the spot market is not really saving the market; it's self-comforting in the final stage of a bubble's collapse. I mentioned last night that the essence of liquidity is that the money made by early participants leaves and does not flow back. Later, when new participants buy at high prices, the funds become exhausted. When buying pressure diminishes and selling pressure accumulates, expectations become the last support for prices.
At this stage, if you don't go on the spot market, expectations can still be held.
Once you go on the spot market, expectations being realized = selling points being realized.
TST, Mubarak, you also said that if you don't go on the spot market, no one will play anymore. What happened? This March, as soon as we went on the spot market, it got doused that very day. This is the inertia reaction of bubble clearing. Do you think cz will make the same mistake again?
The liquidity cycle cannot be reversed by a single event; it follows a constant rhythm. Whether in the stock market, real estate market, or crypto space, no action of going on the spot market to pull liquidity can reverse the entire cycle. At most, it just allows funds to make one last round before fleeing.
The market for the BSC chain won't just end like this; the market needs to calm down, and people need to calm down too. I mentioned last time that it won't end until the sub-month is reached.
Today, the entire chain has plummeted. Some say it's because of the wallet launch, which was too sudden. In fact, it has nothing to do with the wallet; this is actually a common narrative bubble breathing cycle phenomenon.
Whether it's the stock market, real estate market, or the crypto space, the highs and lows of the market are closely related to liquidity. When memes shift from early localized games to a nationwide frenzy, and the density of funds reaches its limit, new buying pressure becomes insufficient, and liquidity starts to dry up. At this point, even a neutral piece of news (like a wallet launch) can become the straw that breaks the camel's back for short-term sentiment. Essentially, it's a technical cooling after liquidity peaks.
Early profit-takers no longer inject funds but start to withdraw. New entrants are merely taking over the old funds.
Those who entered earlier have made money and are no longer willing to continue gambling (because they want to cash out), but their profits come from the later buyers. Thus, when there isn't enough new capital coming in, the entire market structure begins to become unbalanced, leading to a crash.
The narratives in the crypto space cycle like this every so often. For example, narratives like inscriptions, AI trends, GameFi, RWA, and Sol memes are just phase-based consensus. Once they reach a peak state, the market will calm down for a while. This is a natural shock phenomenon when the narrative spreads to its peak and funds cannot follow.
The market needs a "silent period" to reset emotions and digest chips, after which new stories, funds, and beliefs will emerge.
As for the danger, it's clear that it's just to "harvest the leeks," so I find it hard to hold onto the coins recently launched on the BSC chain for the long term. The hidden dangers are evident, and the presence of the heavenly canopy and the soaring snake indicates uncertainty and potential fraud. The heavenly canopy is the star of theft, meaning that the prosperity of the rise is just to cut the leeks.
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