Even a guy with $1k average cost per bitcoin went from being in the red in 2015 and 2016 but then in 2017 he would have went all the way up to 19x profits and then dropped back down to only 4x profits in 2018, but then in 2021 he would have gone up to 69x profits and dropped back down to 16x to 20x profits and then now he would be 116x profits, so there is likely more stress when the profit levels are lower, but one the profit levels reach higher numbers, then they don't become as big of a deal if they might change because there ends up being a lot of cushion and less needs to worry about if profits are going up or down. Sure when the profit cushion becomes very large, guys might still try to make withdrawals when profits are higher, but they are not as much motivated by profits since they have been through the more difficult periods that were in the earlier years.
The journey of a Bitcoin investor with $1k average cost basis vividly shows the significant volatility in profit levels overtime. Initially, it's possible that the investor might have actually experienced some sort of stress when profits where pretty much lower, but as the profit increases overtime, we can see that the stress that usually came with the market volatility with drastically reduced too. And when the profit cushion is much higher, the investor's concern about the short term fluctuations associated with the market becomes way less concerned about the short term market fluctuations as there's a greater margin for error.
As as the investor navigates through different cycles, they'll be able to develop a more logical and seasoned perspective. At this point, they're more experienced and have adapted to the challenges of earlier years, and thus becomes more fixated on long term sustainability rather than short term profitability. And when the profit cushion has become substantial or when they've reached a state of overaccumulation, then the investor might still consider selling off during periods of high profits, but the main thing is that their motivation and focused has shifted from maximizing short term gains to maintaining and sustaining a stable financial foundation.
At this point, the investor's priorities may also switch towards strategic planning, wealth preservation, even diversification, rather than just solely focusing on maximizing profits. It is pretty much easier for investors with a deeper of market cycles and a more substantial Bitcoin stash to adopt a more relaxed and/or flexible approach, because they already know that their financial foundation is more safer.