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, Warren Buffett's golden resource emphasizes disciplined long-term investing, thorough fundamental analysis, and the avoidance of speculation as core principles for market success (source: Compounding Quality, June 13, 2025). For cryptocurrency traders, applying Buffett's approach means prioritizing assets with strong fundamentals and clear value propositions, which can enhance risk management and decision-making in the volatile crypto market.