Part 3/12:
One critical insight from Guy is that significant market lows often occur following major liquidations and large-scale sell-offs triggered by external shocks. A notable example is the 2021 collapse of FTX, which precipitated a wave of forced sales, including the sale of Bitcoin to cover liabilities, resulting in a steep price decline.
However, past events highlight that such triggers can take various forms. Future catalysts might not involve a failed exchange but could stem from poorly managed Bitcoin treasury companies, corporate bankruptcies, or other unforeseen upheavals. Recognizing this pattern underscores the importance of risk management and being prepared for different types of shocks.