White House Crypto Summit Turns Bearish? 5 Tips to Avoid Losses

Source: Talking Outside the Lines

Yesterday (March 7, Eastern Time), the first cryptocurrency summit was held at the White House, marking a new milestone event for the crypto industry. This was the first time the U.S. government held a top-level summit specifically to discuss the future of cryptocurrencies and their regulation, aimed at strengthening the U.S. leadership in the digital crypto economy. It also signifies the official recognition by the U.S. government that cryptocurrencies are part of the American financial system.

There are several messages revealed during the meeting that we should think about and pay attention to, such as:

- Regarding Stablecoins

The U.S. plans to introduce a federal law regulating stablecoins by August 2025 to ensure the transparency and stability of stablecoins like USDC (while preventing the use of competitive stablecoins pegged to foreign currencies), consolidating the dollar's dominant position as the global reserve currency.

- Supporting Innovation

The U.S. government has committed to easing regulations on the cryptocurrency market to support innovation, and will establish a new digital asset working group to formulate transparent policies.

- Regarding Altcoins

In the existing strategic reserve plan, Bitcoin's special status will be treated differently from other crypto assets. The government may consider establishing a separate fund for other crypto assets (altcoins excluding Bitcoin), but specific details are still unclear. Our intuitive understanding is that, at this stage, the U.S. government remains uncertain about altcoins like ETH, XRP, and SOL, with no clear regulations yet, and we need to continue patiently waiting for further policies to be introduced.

Although the White House crypto summit has laid a new foundation for the future development of cryptocurrencies, the market is still facing a decline in the prices of Bitcoin and altcoins. The reasons for this issue were mentioned in our previous articles; currently, market sentiment is generally low, and there are no favorable conditions to meet the expectations for a rally in the short term. Even an event of the White House summit's caliber can only be considered "bad news."

People hoped that the U.S. government would invest funds and make large-scale purchases of Bitcoin, but that did not happen; they hoped for tax incentives for cryptocurrencies, but that did not happen either… The hopes before the summit were as high as the disappointments afterward. As a result, the market continues to experience a downward trend, and the risk of short-term corrections is also intensifying.

Last year's approval of ETFs represented the formal entry of large institutions, and this year's strategic reserves represent the formal entry of the national team. The crypto industry seems to be developing in a positive direction, but at the same time, the opportunities for ordinary people to get rich are indeed becoming fewer and harder to come by. While looking forward to the future, it might be better to cherish the present.

Although it seems difficult at the moment, and there are various uncertainties in macro factors, the Federal Reserve does not seem to have the willingness to urgently cut interest rates, while Trump appears to be continuously pressuring Powell. The combination of various uncertainties has not only led to severe fluctuations in the crypto market but also the U.S. stock market has not been doing well recently. In this situation, for most ordinary people, patiently waiting for new opportunities may be better than making random trades.

For example, for some new PvP games, if you have the time and energy and want to participate, you can just play casually, but don't hold onto the idea that you can get rich overnight (or turn your fortunes around overnight). Yesterday, I noticed some friends discussing a new MemeCoin called Cocoro (named after a new dog owned by KABOSU, the owner of the DOGE prototype Shiba Inu), which reportedly received support from Base officials. However, judging by the price movement after its launch, most of the friends probably didn't fare much better. As shown in the image below.

Amid the pessimistic sentiment of many, the current market has re-entered a rather harsh phase, with more and more people beginning to lose patience and funds. A couple of days ago, a friend left me a message saying that he was currently fully invested in altcoins (80% ETH and 20% other altcoins), holding onto them without any movement, and his position had dropped from a peak of 15 million to just 3 million now.

After a brief exchange, I learned that this friend actually had a relatively low cost basis for his ETH holdings. Even though his position has dropped to 3 million, he is still in profit. Regarding this situation, my personal view is that whether it was due to not setting reasonable profit-taking targets or not strictly following his trading records, the past can only serve as historical experience, not something to dwell on. It’s better to forget about the 15 million and re-plan new goals; otherwise, similar situations may happen a second or third time.

In fact, experiencing profit withdrawal or loss of principal is something many people, including myself, will go through. The difference is that some choose to let go (accepting the gamble), while others can never let go (willing to gamble but not accepting loss). In previous articles from Talking Outside the Lines, we have mentioned more than once that this market cannot allow everyone to make money; losing money is the ultimate fate of most people, especially in seemingly beautiful bull markets, which often leads many to lose everything.

So, how can one continue to maintain a forward momentum psychologically in such situations?

1. Give up the thought of "I could have…"

For example, I could have made 10 times the profit, I could have not bought that certain dog coin, I could have ignored someone's advice, I could have…

I remember someone in the group once said: If you could go back in time, most people still wouldn't be able to change their fate.

I think this statement makes a lot of sense because investing is a comprehensive practice, but most people are often swayed by emotions.

We have always said in previous articles that the market is cyclical. What we need to do is not to try to control the market but to adapt to it, while also trying to maintain emotional stability (not panicking).

For short-term trading, as long as you strictly set stop-loss and take-profit levels based on your position and risk preference, that’s sufficient. For long-term trading, as long as you have a long-term favorable view of the asset, you can patiently operate based on your risk preference over larger cycles.

2. Give up the thought of "I want to recover my losses quickly"

This issue is also one of the most common series of problems I have encountered. Many friends like to message me, and their core purpose is to hope that I can provide them with specific trading guidance to help them recover losses quickly.

Of course, I cannot provide such help. First, my personal principle is to only share knowledge and not provide trading guidance (including signals and calls). Secondly, to be honest, I don't have any trading secrets that can help people recover losses quickly. If someone claims to have such secrets, you should be cautious about your principal; they are likely scammers.

Many people (especially newcomers who have just entered this field) tend to choose to engage in revenge trading after experiencing losses. In fact, once you fall into this vicious cycle, you will not only continue to lose more principal but may also slowly lose yourself.

I want to recover losses quickly ≈ I want to lose more.

The market is ruthless; it does not care about your (or anyone's) losses. We mentioned in previous articles that the core logic or play of the market is to make as many people lose money as possible.

Therefore, when you face (and acknowledge) temporary failures or setbacks, the best approach may be to "do nothing" until you have rethought what you are doing.

3. Preserving profits is more important than earning more profits

Especially during a bull market, when the market enters a highly speculative phase (when market sentiment is high), your primary goal should not be to make more money but to prioritize preserving existing profits.

A bull market is an opportunity, but for most people, it is often a beautiful trap.

If you are doing short-term trading, you must keep a clear mind, manage risks well, stay focused, and strictly adhere to your trading discipline. If your investment strategy is long-term, then you don't need to care about any short-term fluctuations; instead, spend more time doing other things you are interested in, such as going for a run or spending more time with family.

Money can always be made; do not easily compare yourself with others, but rather compare yourself with your past self. Losing at the starting line does not count as losing, and do not envy those who race against you in sports cars, because most participants cannot sustain until the finish line. In this field, we only need to stay ahead of the majority.

To give a simple example, if you have $100,000 and gamble on MemeCoin, you might make $10 million in a day, but you could also lose it all in a day. However, if you take that $100,000 and reasonably engage in on-chain finance, achieving an average annualized return of 10%, then after 10 years, your $100,000 would grow to $260,000 (compounding growth).

And this is just a simple example of finance. If you had started investing $1,000 in Bitcoin on the first of every month since March 2020, without doing anything else, and continued until March 2025, your total investment would be $60,000, but you would now own about 1.766 Bitcoins, currently valued at over $150,000.

4. Reduce information interference

There is an overwhelming amount of news, messages, and information online, and there are many so-called experts and teachers. The information is mixed and often unreliable. To say something that might not sound pleasant, if you follow 1,000 experts/teachers, 99% of them or their viewpoints will only increase your emotional uncertainty, FOMO, or panic, and will not genuinely enhance your understanding or logic.

Moreover, over 90% of so-called experts or teachers, especially those who frequently share their trades and claim to always buy at the lowest and sell at the highest, may not actually know much about trading, or they might not have participated in any trades at all, or they are losing just like you; they just won’t tell you the truth because you (or the traffic) are their real source of income.

Unless you have the ability to efficiently filter and identify effective information from the vast amount of data, it might be better to stay away from those who create anxiety, reduce information interference, and take time to think and review quietly, or read some reliable in-depth articles, research, or reports. This way, you can fundamentally achieve better and faster cognitive growth.

5. Always stay optimistic

Yes, losses can indeed make people anxious, and anxiety can lead to pessimism, but life must go on.

For investing, as long as the market exists, new opportunities will arise. Instead of getting stuck in past failures, it’s better to reconsider how to make good use of this time to do some new things within your capabilities. For example, learn some new trading skills (candlestick knowledge, programming, trading books, etc.), study market patterns (historical cycles, liquidity, on-chain data, etc.), start making learning or trading notes, and share and communicate with like-minded people (because the best learning comes from output, not just input)…

That’s all for today. The images/data referenced in the text have been added to the Talking Outside the Lines Notion. The above content is just personal opinions and analyses for learning and communication purposes and does not constitute any investment advice.