Price is Crashing: Judging by My Twitter TL

If you've been paying attention to the BTC price or have been on Twitter recently, you've probably noticed the panic. Prices are crashing, and it's all anyone can talk about. This cycle, I've had to put extra effort into not obsessively checking the price. It's affecting my mood, and I'm sure many of you feel the same.

The Emotional Rollercoaster

During the last cycle, I found myself constantly glued to the price charts. Every dip felt like a personal failure, and every spike a fleeting moment of euphoria. The losses seemed to sting far worse than the wins felt good. This is classic loss aversion, where the pain of losing is more intense than the joy of gaining. It's a tough cycle to break, but it's crucial for maintaining a healthy mindset.

Volatility: The Double-Edged Sword

Yes, there's volatility to the upside, but let's not forget it's still volatility. The wild swings can be thrilling but also devastating. For those of us who aren't day traders, this constant fluctuation can be nerve-wracking.

This also makes it difficult for those of us starting to use BTC or sats as a unit of account. It's hard to judge revenue as xBTC or expenses as yBTC when the price changes 10% some day. However, looking back over the years, I've noticed that these swings are becoming smaller and smaller (the revenues & expenses are getting smaller too denominated in BTC). What will it be like in two years? It's hard to say, but the trend suggests a maturing market.

Who Really Needs to Check the Price?

The truth is, only traders need to check the price constantly. Price only matters if you intend to sell. If you find yourself unable to handle the losses, it might be a sign that you're over-allocated. Most of us are irresponsibly long. Re-evaluating your risk tolerance and investment strategy is crucial. Remember, this is a long-term game. Better to be in the market with slightly smaller stacks than all in and unable to handle stress (or being forced to sell at a low point in the market due to an unexpected expense).

A Final Thought

The market's ups and downs are a test of our patience and resolve. By staying informed but not obsessed, we can ride out the waves and come out stronger on the other side. So, the next time you feel the urge to check the price, take a deep breath and remember your long-term goals.