Fear and greed in the crypto market swing like a pendulum, forever oscillating between two extremes. And the ones who truly make money have already acted when the majority were screaming.

Still remember the big crash of LUNA and FTX? Bitcoin dropped all the way to $15,000, and the market was filled with voices saying "this time it's really over." But just a year later, leading institutions flocked in, and Bitcoin surged to a historic high of $69,000. What about those investors who sold at the top? They turned around and chased Ethereum. As a result, the tax shock in April caused Ethereum to drop to $1,300, and there was yet another round of discussions about "this thing has no future." Unexpectedly, Ethereum rebounded threefold and surged to $4,800.

What about now? Every time the market adjusts, the same lines start to circulate again - "The blockchain dream has been shattered." I'm tired of this script.

**The Rhythm of Market Psychology**

The crypto market is essentially a game of collective psychology among participants. The metaphor of "Mr. Market" is taken to the extreme here. The data from Grayscale is very interesting: since Bitcoin hit its bottom in November 2022, the market has experienced 9 declines of over 10%. Now, this adjustment of about 30%? In fact, it is completely consistent with historical averages, and it is just a "normal correction in a bull market," not a cyclical collapse.

Data also shows that Bitcoin inevitably experiences at least three double-digit declines each year, with the average drop around 30%. Those who panic sell generally miss out on the subsequent rebounds every time.

**How to distinguish between traps and real opportunities**

The most direct signal is to observe what institutional funds are doing. When large amounts of money start to quietly position themselves, it often indicates that a turning point is approaching.