In early May 2021, the Crypto Assets market fell into a frenzy of speculative excitement. Numerous small coins achieved astonishing rises of several times or even ten times in an extremely short period, and the market was filled with an unprecedented speculative atmosphere. However, this carnival quickly came to a halt, and the market subsequently entered an adjustment period.

After about 10 days of adjustment, most investors predicted that a rebound was imminent based on short-term trends and began to prepare to enter the market or increase their positions. However, they did not anticipate the disaster waiting for them, the '519 crash'. Influenced by China's regulatory authorities strengthening regulation of virtual currencies, issuing trading bans, and cracking down on mining activities, coupled with concentrated selling by early profit-takers in the market, the prices of mainstream Crypto Assets such as Bitcoin and Ethereum plummeted, while smaller Crypto Assets suffered devastating blows, with declines generally exceeding 50%. After this crash, the market fell into a prolonged state of stagnation for two months, with many investors unable to bear the pressure of losses being forced to cut their losses and exit during the downturn.

In mid-July, the market began to gradually stabilize and rebound, showing a clear trend of recovery by August. At this point, previously exited investors and off-site funds noticed the market warming up and hurriedly entered the market to chase the rise. In the following three months, the market continued to rise strongly. By November, most Crypto Assets not only recovered lost ground but also broke through the early May highs, while small Crypto Assets迎来了牛市尾声的最后疯狂.

At this time, although multiple risk indicators in the market have turned red, most investors are still blinded by the profit effect and are unwilling to exit the market. They come up with various far-fetched reasons to convince themselves: some overestimate their risk tolerance based on having 'experienced the crash in May' without truly understanding the market logic; others forcibly seek various reasons to support their decisions.

This year's Crypto Assets market has fully demonstrated the complexity of investor psychology and the high uncertainty of the market. From frenzy to collapse, then to rebound and a new round of frenzy, the market has experienced intense volatility. This volatility not only reflects the high-risk characteristics of the Crypto Assets themselves but also highlights the enormous influence of regulatory policies on the market. For investors, this is a profound lesson that reminds us to maintain a clear mind in the face of such a volatile market and to establish reasonable risk management strategies rather than blindly following market sentiment.