According to @QCompounding, bull markets can lead traders to overestimate their own skill as asset prices rise, attributing gains to personal ability rather than favorable market conditions. This mindset can increase trading risks, as participants may take on excessive leverage or ignore risk management protocols, a trend frequently observed during surges in BTC and ETH prices (source: @QCompounding, Twitter, June 15, 2025). Understanding this psychological bias is crucial for crypto traders to maintain disciplined strategies and avoid losses when market conditions shift.

According to Compounding Quality on Twitter, the current bull market can create a false sense of confidence among traders, as rising prices may be driven by external market conditions rather than individual skill (source: @QCompounding, May 19, 2025). This insight is highly relevant for crypto traders, highlighting the importance of distinguishing between market-driven gains and personal expertise to avoid overleveraging during bullish cycles. Understanding this dynamic can help traders develop more disciplined strategies and manage risk effectively in volatile cryptocurrency markets.