#数字资产市场动态 Talking about why the market experiences significant volatility, it's not something that can be explained by just one or two factors.

Look at the upward phase: capital inflows → confidence boosts → more funds pouring in → overwhelming optimism. Once this positive feedback loop starts, it’s unstoppable. Winners make huge profits, while losers can still benefit from the market momentum. Everyone celebrates together, with various capital sources fueling the frenzy, creating a "either-or" situation—either massive gains or exit.

But here’s the problem. When growth slows down and expectations reverse, what happens? There are no hard rules to support the market, so it begins to devour itself. Financing becomes difficult, project teams rush to cash out. Retail investors panic, institutions follow suit and cut positions. The contraction turns into a stampede, and the stampede accelerates the contraction. Risks shift from gradual buildup to concentrated bursts. This isn’t a bug; it’s the inevitable cost of capitalism’s pursuit of infinite growth and efficiency.

From another perspective, market prosperity and collapse are driven by the same underlying logic. Just as perpetual motion inevitably causes wear and tear, infinite growth expectations must eventually materialize, and the process of realization is often painful. Those seemingly "black swan" crashes are actually the long-accumulated pressure within the system finally being released.

Understanding this logic helps explain why individual responses to market fluctuations are often too slow—because it’s not something that rational calculation can control, but rather a hedge against collective psychology and the inherent nature of capital.