I have a friend, and that night he lost all his positions.

At 3 a.m., a phone call shattered the silence. On the other end, a friend stammered, “Bro, it’s over… everything’s gone…” I instantly woke up, opened the exchange to look at the screen, and my pupils constricted.

It was a shocking market crash. Bitcoin broke below key support, Ethereum plummeted, and $1.5 billion in liquidations flickered across the screen. I have a friend who, that night, saw his digital wealth in his account revert to zero overnight. He wasn’t the only one. That night, how many people like my friend went from paper millionaires back to workers?

When the tide recedes, you see who’s been swimming naked. This phrase has been quoted countless times, but truly understanding its meaning often only comes in the most embarrassing moments.

How many became “naked swimmers” in the wave of liquidations

Remember last year’s madness? When Bitcoin surged toward $100,000, everyone was saying “this time is different”—institutional money pouring in, ETF approvals, halving hype about to kick off. The entire market was immersed in euphoria. I had a friend who jumped in then, and at the peak, his account tripled.

But markets never lack stories; what they lack is respect for price volatility.

Now, the data gives a silent answer. Bitcoin has retraced from its all-time high, Ethereum has also experienced significant declines. According to the latest figures, BTC is around $69,740, up 4.69% in 24 hours; ETH has risen 6.12% in the same period. These numbers look like a rebound, but for those who went all-in at the top, these rebounds hardly make up for the previous losses.

Technical indicators don’t lie. When the market fear index approaches levels seen during the March 2020 pandemic crash, the mirror effect of history becomes evident. Back then, Bitcoin fell from $10,000 to $3,800—how many disappeared in that disaster? And this time?

Every bull market end, someone claims “this time is different,” every crash, someone shouts “the bottom is in.” But the cruel truth is: most people make wrong decisions at the wrong time.

From confidence to panic, what happened

Over two billion dollars evaporated in a short period—this is not coincidence but a necessary market correction.

A friend of mine exemplifies this with his own experience—over the past year, countless funds flooded into the crypto market, inflating asset valuations and creating bubbles. When macro conditions change and liquidity shrinks, these inflated valuations must inevitably revert to reality.

What is the essence of cryptocurrency? It’s high-risk speculation. Its value isn’t about how innovative the technology is, but about how strong the market consensus is. When that consensus breaks and confidence collapses, prices fall like free fall back to rationality.

This process is like blowing up a balloon—initially, it gets bigger and bigger, everyone revels in the expansion, until one moment, a pin pricks it, and it bursts instantly. Those still blowing into the balloon at its peak suffer the deepest injuries.

The inevitability of the bubble bursting

Market textbooks say: assets don’t go up forever.

The Fed’s policy shift, tightening global liquidity, rational corrections by institutional investors—these aren’t sudden events but ongoing processes. Yet many are blinded by the cheer of the bull run, failing to notice the changing wind.

A friend once asked me, “Why do people only believe when prices are rising, but leave when they’re falling?” That’s a good question. The answer is human nature. Greed is maximized in bull markets, while fear is amplified infinitely in bear markets.

Those who once vowed to “reach the moon” are now silent. Those who loudly claimed “diamond hands” might already be ready to leave the planet.

To survive, understand these three truths

From my friend’s painful experience and years of market observation, I’ve summarized three harsh lessons for everyone still in the game:

First, don’t try to bottom fish. This is the hardest rule to follow but the most important. When prices are still falling, the knife is still dropping. Trying to catch the bottom only cuts yourself. The real bottoming opportunity isn’t at the most embarrassing moment but after confirming the bottom and seeing a rebound.

Second, always control your position size. This isn’t just advice; it’s a bottom line. Keep your crypto investments within 10% of your total assets—this is a lesson learned by countless investors risking their real money. Exceeding this ratio turns your risk from an investment risk into a life risk.

Third, ask yourself: if all my investments go to zero, can I still live normally? If the answer is no, then your position size is beyond your capacity. Adjust immediately, with no exceptions.

Friend, what has this lesson taught us?

The market is the cruelest teacher, using the most brutal price declines to teach respect.

This correction will cause many to leave the crypto space entirely. It will also make some reevaluate their investment logic and risk management skills. Those who survive will develop a deeper understanding of the market.

One friend of mine, after this night, completely changed his investment mindset. He no longer dreams of overnight riches but focuses on steady growth through long-term participation. That transformation itself is valuable.

The story of cryptocurrency will continue to unfold, new opportunities and cycles will emerge. But the way we participate must become more rational—rational enough to admit our greed, respect risk, and see survival as more important than making big money.

In this game, simply surviving is the greatest victory.