Price movements in the cryptocurrency market are undoubtedly one of the most influential factors for investors. However, the price does not always reflect the truth. The big players in the market manage perception and shape investor psychology with price movements. Instead of focusing on short-term fluctuations, it is critical to understand long-term dynamics. Price is an illusion.
Price and Perception Management
When the price increases in the market, it is perceived positively, while the sentiment is perceived negatively. However, this perspective is misleading. Big investors manipulate market perception and use price movements to their advantage. Bitcoin has reached the $100,000 level many times, but the fact that Ethereum is at different levels each time shows that price alone cannot be a criterion. Real value goes beyond price.
Institutional Investments and Market Dynamics
Institutional investors are increasingly involved in the crypto market. Large financial institutions and investment funds are turning to assets such as Bitcoin and Ethereum. However, investors should focus not only on price movements, but also on regulatory developments and institutional moves. ETF applications, government policies and moves by big investors determine the real direction of the market. Look at the big picture, not short-term price movements.
How Do Winners Move?
Instead of being affected by short-term fluctuations, successful investors act with patience and strategy. The buy-hold-wait strategy is one of the most solid approaches to make a profit in the long term. Instead of focusing on a single asset, diversifying the portfolio and managing risk provides profit in the long term. Those who act in panic lose, those who proceed with strategy win.
Price is an illusion in the crypto market. Investors should focus on macroeconomic developments and long-term trends instead of being carried away by short-term price movements. Those who analyze the movements of big players and are aware of market manipulations will be the winners in this game. Follow the real value, not the price.
Author: Besim Şen