Macro and regulatory shocks come suddenly. The approval of an ETF, a central bank statement, or a single remark by a political leader can trigger a massive upheaval. For example, around the time of the 2024 halving, Bitcoin's realized volatility soared to over 60%. Even Ethereum, an asset often considered more "techy," experienced volatility exceeding 50% for several consecutive months. These levels far exceed those of traditional assets, but they are the price of entry into the cryptocurrency space. In other words, extreme volatility is not an anomaly; it's the norm in this market. The Pain of Losses—and the Pattern of Recovery Cryptocurrency investors are all too familiar with declines. Bitcoin has experienced dozens of 20% to 30% corrections in previously bullish years. Ethereum has experienced even more brutal crashes—in previous cycles, its value plummeted by over 80% before rebounding to new highs. Take Bitcoin's history as an example: In 2013, BTC fell by over 70% before resuming a long-term upward trend. In 2017-18, BTC plummeted from peak to trough, dropping nearly 85%. In 2021-22, BTC again plummeted by over 70% before recovering. Ethereum's declines were even greater: 90% in 2018 and 80% in 2022. However, each time, ETH managed to recover and surge in the next cycle. These declines were painful at the time, but historically, they were merely temporary phases within a larger growth arc. Each cycle's low is higher than the previous one's high, indicating that market adoption and structural demand are driving a rising long-term fundamental. Why Panic Selling Rarely Works When the market suddenly plummets, the natural reaction is fear. No one wants to see red candlesticks eroding their portfolio. Selling appears to be in control. But here's the problem: cryptocurrencies' biggest gains often follow their most brutal sell-offs. Analysts have shown that missing out on Bitcoin's 10 best days of the year can significantly reduce your annual returns. In some cases, it can even go from strong positive returns to flat or even negative returns. Cryptocurrency returns are thus concentrated. And those best-performing days almost always occur during periods of market volatility. If you sell during a panic, you often miss out on the rebound. Not only do you lock in your losses, you also miss out on the chance of a rebound. This is why I strive to avoid turning temporary losses into permanent ones. My Personal Views on Flash Crashes Again, these aren't recommendations—just my thoughts. 1. Set an Allocation Range in Advance I decide what my "core" cryptocurrency holdings should be when the market is stable. For example, a certain percentage of BTC and ETH. I also set a maximum allocation that I never exceed. This predetermined range prevents me from panic selling when prices are too low or blindly buying when prices are too high. 2. Plan Add-on Zones in Advance I don't guess at bottoms, but rather establish "buy-on-dip" zones—like a 10%, 20%, or 30% drop from a recent high. That way, when the market plummets, I already know my strategy. Decisions are made in calm waters, not in the storm.
3. Prioritize Survival
The most important thing is to stay well-funded and in the market. Bitcoin's worst declines have been devastating, but those who manage their positions properly and survive have always benefited when the next rally begins.
4. Remember Volatility Works Both Ways
The same volatility that's terrifying on the downside is what drives extraordinary gains on the upside. In my opinion, they're two sides of the same coin.
5. Focus on the Big Picture
With every cycle, adoption deepens. From institutional custodians to ETFs, from protocol upgrades to Layer 2 expansion, the ecosystem continues to grow. Volatility won't erase that. This is just noise on the road to long-term structural change. Current Market Observation: Bitcoin is currently range-bound between $108,000 and $117,000 after a sharp sell-off. Some traders view the $107,000 level as key support. More important to me is market action: will the panic and forced liquidations be quickly absorbed, or will the decline continue? More important to me is market performance: will we see panic and forced liquidations quickly absorbed, or will selling pressure persist? Meanwhile, Ethereum has its own dynamics. Historically, its declines have tended to be deeper, but when risk appetite returns, Ethereum typically rebounds more strongly than Bitcoin. With Ethereum ETFs already launched and more infrastructure being built, I'm watching to see if these instruments absorb declines, just as the Bitcoin ETF did after its approval. Why I Think Volatility Is an Opportunity To me, volatility isn't something to be avoided; it's something to be embraced, even exploited. If you consider Bitcoin and Ethereum to be long-term stores of value and foundational technologies, then volatility becomes a feature, not a bug. It creates accumulation opportunities when fear is high and confidence is low. It eliminates weak-willed holders and redistributes supply to those willing to hold on for the long term. This doesn't mean blindly buying on dips. Rather, it means preparing ahead of time, understanding your risk tolerance, and managing your positions to avoid getting hit hard by inevitable market fluctuations. Stay Calm and Analyze Every time I see a wildly volatile red candlestick, I remind myself: This is cryptocurrency. This is its nature. The market is constantly going through cycles of rallies and whipsaws. In my experience, those who consistently panic sell rarely profit from the subsequent rally.
The truth is, no one can know with certainty what Bitcoin or Ethereum will do in the next week, month, or even year. But history shows that those who weather the volatility, maintain discipline, and accept short-term dips as part of the game tend to be the ones who emerge stronger when the next rally comes.
So my approach is simple: don't panic, plan ahead, and remember why you got involved in crypto in the first place. Volatility is the price we pay for holding crypto. But if history is any guide, it's a price worth paying.
Catherine
Clement
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