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👩🔬 This cycle IS different (2/3)
Now we know that we should observe alts separately. But almost all alts dumped together on April 13th caused tons of liquidations, especially fresh ones. Why did this happen?
Of course alts are not completely independent: #BTC and #ETH still affect them, so in case of a big move alts may move together. The question is why new shiny coins dumped much more than old dinosaurs?
It happened because of ridiculously high market caps of new coins. They enter markets with few coins unlocked, but billions of market cap. This cause constant selling pressure all the time except the first few weeks/months.
Here is an example: this May $1.1 billion #AEVO will be unlocked for the team and big investors: this is 750% of the current circulating supply! This is an insane selling pressure! It's easy to track more than $4 billion in cliff unlocks this month and this is only 130 token data! The real number is much much higher, probably around $500mil of unlocks per day. For reference, #BTC inflation is around $35mil per day.
2️⃣ Second new rule: it's vital to check market caps and tokenomics. Most of new coins are stillborn and they will dump forever.
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I have been observing crypto market for more than 7 years and I've already seen two full cycles of #BTC and alts rallying to unbelievable highs. This series of posts will explain why I think this particular cycle will be different!
I have been scrolling through a lot of sad tweets about losing everything for the last few weeks. My friends have lost money, well, I lost some money too. Why was it so difficult to trade recently while #BTC is basically at its highs?
Well, the reason is alts market. Only old school traders like me still trade #BTC, almost all of you trade alts instead! Why have we lost so much money on alts while #BTC was trading super high? In previous cycles we would see an altseason instead!
1️⃣ First new rule: alts aren't correlated to #BTC anymore, they have their own cycles instead.
$BTC
#ETFvsBTC
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