How important is sentiment analysis in the crypto market? This question is worth a deep exploration.

For speculators, every turn in the market is accompanied by intense emotional fluctuations. And what about value investors? Their core weapon is the margin of safety—based on judgments of a project's true value, they buy decisively when the price drops to a sufficiently deep discount. It sounds like the margin of safety is the key, but here’s an interesting phenomenon: public fear often signals the arrival of a market bottom.

Imagine this scenario: when everyone is selling off and the market is extremely pessimistic, it’s the golden window for low-cost buying. The same capital can acquire more tokens in a panic—this is tempting for any investor. So, while sentiment analysis involves predictive elements, it’s not entirely unpredictable.

Many say not to predict the market, but my practical experience suggests otherwise. By observing the irrational behavior of the masses, you can not only buy the dip at the right time but also maintain rationality during holding periods. When you see the market going crazy, you should alert yourself: am I also being swept up in it?

This is the brilliance of contrarian investing. Truly low-price buying opportunities often belong to those who can identify the masses’ irrationality and dare to operate in the opposite direction. The success or failure of value investing ultimately hinges on these emotional turning points.