Why is it that when Bitcoin is sold off, the first to be affected are always the emotional traders?

Every time a certain sector sells Bitcoin, the biggest impact is not on long-term holders, but on highly emotional leveraged funds. The reason is that such events naturally amplify three market mechanisms:
First, risk aversion triggered by uncertainty;
Second, chain reactions in the derivatives market leading to liquidations;
Third, short-term funds rushing to exit the market.

In such an environment, the actual selling pressure on Bitcoin spot is often overestimated. What truly drives the rapid price decline are forced liquidations and short-squeeze behaviors in the futures market, not a few transfers in a particular wallet.

From this perspective, a sector's sell-off is more like an "emotional amplifier" rather than a trend creator. It does not change Bitcoin's long-term supply and demand structure but tests the market’s capacity to withstand pressure in the short term.

For rational participants, the value of such events lies not in blindly following the trend but in observing whether the market is experiencing irrational pricing. When panic stems from headlines rather than fundamentals, volatility itself becomes an important signal. #美司法部抛售比特币