jakiro
Source: Daoshuo Blockchain
Article on May 4“Milestone of Ethereum Spot ETF”In the comment area below, a reader asked this question:
Why did Ethereum’s price not rise sharply after this news was passed?
I remember that many media in the circle discussed this issue that day, and each company gave many explanations. The more typical ones are the following two:
For example: Once the news becomes a fact, the market may have overreacted, causing the price of Ethereum to fall.Therefore, investors may choose to sell Ethereum after the news is announced to make a profit or avoid risks.
For example: This news only means that the relevant regulatory documents have been approved, but spot ETFs cannot be traded yet. They still need to wait for S1 documents to be approved before over-the-counter funds can enter the market to trade, so this positive news cannot be implemented yet. EthereumThe price can’t rise for the time being.
……
These explanations may make sense, but sometimes they do not make sense, because we can often see that asset prices are rising sharply when other similar financial events occur.
Therefore, short-term fluctuations in the market are often difficult to predict under the stimulation of such news.
I think as an ordinary investor, there is no need to pay too much attention to the short-term rise and fall of this news to the market. I just need to know that this news will definitely benefit Ethereum and even the entire crypto ecosystem in the medium and long term.
Moreover, we don’t need to wait too long in the medium and long term. I believe that in the next few months or even half a year, we will most likely see the positive news fulfilled.
Seeing this problem, I thought of a situation that I often encounter in investment, which is also related to short-term market fluctuations:
I am optimistic about the medium- and long-term trend and price potential of a token, so I bought this token.But after I bought it, the token not only did not rise but continued to fall for the next period of time, but only started again after a period of hovering.
I originally thought this was just an exception to me, but recently I realized that Duan Yongping often encountered this situation when I looked at Duan Yongping’s investment sharing. Not only Duan Yongping often encountered it, but also Mr. Buffett often encountered it.
Mr. Buffett also made a special statement about this, which is the general idea: It is stupid to expect the stocks you are optimistic about to rise immediately after buying.
At this moment, I suddenly realized that this is the norm for many investors (including top investors), not unique to me.
This further shows that in this market, except for a few geniuses, no one can predict the short-term fluctuations of the market in a long-term and accurate manner.
Even top investors do not have such ability, so as ordinary investors, there is no need to spend time guessing such fluctuations.
I remember that in the articles in the circle that day, in addition to a lot of analysis on why the Ethereum price did not rise, the most other thing is how much the Ethereum liquidation amount is——-I guess there are ten of them here.It is probably because of the bet on this fluctuation and betting on the wrong direction.
Buffett and Duan Yongping have clear operations on this phenomenon: completely ignore this short-term market fluctuation and always focus on the fundamentals and medium- and long-term positives of stocks.
I think this principle applies to crypto assets.
So, when we see this news, the first reaction in our mind should not be how the price of Ethereum will change after the news is released, but we speculate that in the upcoming bull market, Ethereum and the entire crypto ecosystem will be the most important thing.What kind of impact will it be?
