Why is the current Bull Market so tense?

Many long-term investors feel that this bull market is "Harder" than previous cycles. The reason lies not only in the strong growth rate of the market but also in the change in the structure of participants and how they trade.

1. The Boom of High-Leverage Trading In previous years, most of the capital flowed into spot trading – buying and holding assets. However, currently, the number of participants using futures contracts (futures) and high leverage has surged. With this tool, a small capital can amplify profits many times over – but at the same time, it also amplifies the risk of losses.
2. The FOMO Psychology in Bull Markets When the overall market rises sharply, especially with calls for "altseason" – the explosive growth season of altcoins – many traders do not want to miss the opportunity. They open long positions with high leverage, hoping to catch a breakout to quickly multiply their accounts.
3. Consequences: Shock Adjustments This enormous leverage is what makes the market fragile. When the price experiences a slight correction, long positions are liquidated en masse, leading to a chain reaction – the price drops further, resulting in sharp declines that everyone sees as "sudden" and "brutal."
4. Lessons for Investors Risk management: Don't let high leverage turn potential profits into catastrophic losses. Understand the market cycle: A bull market does not mean vertical increases; corrections are normal. Long-term thinking: Invest smartly based on value and sustainable macro trends rather than chasing short-term waves. The bull market brings many opportunities, but it also hides dangerous traps. Understanding the motivations behind the violent fluctuations will help you survive – and win – in this harsh game.