What does it mean to buy a fund at its highest point? (Will buying a fund at its highest point always lead to continuous losses?)

What does it mean to buy a fund at its highest point? What does it mean to buy a fund at its highest point? What is the concept of buying a fund with how many Bitcoins? Investment funds can purchase many different types. In general, we believe that there are two factors that affect investment portfolios: an increase in liquidity (risk control) and price fluctuations; an increase in investor expectations of future returns (growth in return rates); changes in institutional investors’ decision-making attitudes and market trend judgments.

So how are the highest numbers for buying funds determined? Second, why is it said that only three reasons lead to such results: one is the change in asset pricing rights, and the other is the adjustment of token markets (such as the price decline during Bitcoin halving).

Will buying a fund at its highest point always lead to continuous losses?

Recently, the market has been heating up, and Bitcoin has started a pullback after breaking through the $40,000 mark. According to Sina Technology, around 8:00 PM on January 22, 2019, the premium rate of Grayscale’s cryptocurrency fund GBTC was -0.04%, setting a new historical record. At the same time, Ethereum also experienced a sharp decline, with its net value shrinking by more than 50% (about RMB 14 million).

However, at the same time, some people believe that the current market situation is good news because institutional funds have entered, causing the enthusiasm of retail investors to rise due to the price increase. But in this case, investors do not have much investment intention.

So here’s the question: why do we see some funds buying coins from their highest point to the current lowest point? If you buy this asset at this position, will you continue to suffer losses? Personally, I think this is a misunderstanding, and now many people have cashed out. They entered the market when they couldn’t maximize their profits. At this point, you should understand that when the price of the fund reaches a certain specific level, you will not lose money, which means that more people will profit during that period, thereby increasing the time and cost they have invested. Does this mean that you will never have a reason to make money? Actually, the answer is the same.

As mentioned in yesterday’s article, in the past two months, Bitcoin has soared from $20,000 to over $32,000 and has been in a sideways adjustment for two consecutive days, indicating that this phase is not over yet. But as these assets are increasingly accepted and used by mainstream society, people’s attention to Bitcoin is growing. For those who do not have a positive view of cryptocurrency, there may still be some concerns.