This article has been brewing for quite a long time. The content of the article may make many people feel uncomfortable, and it may say things that many people don’t like to hear. If you feel uncomfortable when you see the title, you can give up reading on.

After Bitcoin and Ethereum passed the ETF, Bitcoin was strong, Ethereum was relatively weak, and the altcoins were sluggish. In fact, the root cause is not the deterioration of liquidity, but the fact that the size of funds has increased, and the dealers and market makers have lowered their profit expectations. Here are a few sets of data:

Before 2017: Total market value of 11.5 billion, market value of top 100 altcoins 681 million, Ethereum accounts for 94% (those after 100 are not included)

The peak of the bull market in 2017: total market value of 574 billion, market value of the top 100 altcoins was 117.7 billion, and Ethereum accounted for 79% (those after 100 were not included)

The peak of the bull market in 2021: the total market value is 306 million, the market value of the top 100 altcoins is 855.5 billion, and Ethereum accounts for 72% (the top 100 is not included)

Peak point in 2024: Total market value of 288 million, market value of top 100 altcoins is 734.3 billion, with Ethereum accounting for 74% (those after 100 are not included)

Before 2017, the price of Bitcoin was basically around 1,000. The overall market value was very small, and the market capital volume was also small. At that time, there were no market makers and no VC investment. It was all retail investors who used fomo to pull the market up, and individuals relied on their influence to attract traffic. Because of the small size, although the capital was small, the effect of pulling the market up was very obvious. At that time, many people became rich overnight. Due to this effect, everyone invested small amounts of capital and made millions or tens of millions of dollars.

After 2017, VC-invested projects gradually emerged, and market makers also began to appear. After experiencing the baptism of the bear market, the market value of the big cake and the cottage reached a very low level. In 2019, the total market value was 100 billion, and the cottage market value was 30 billion. Simply put, at that time, even if you bought a coin to the peak of the bull market, you could make an average of 30 times. At that time, the daily trading volume of a coin was difficult to reach 100 million, and the funds of market makers were only hundreds of thousands or millions. They also wanted to make more money, and the market value was small enough, so there were many high-multiple coins.

Now that the ETF has been passed, we can see that the total market value of the highs in 2021 and 2024 is not much different from the total market value of the cottage. Why can't it be pulled up! It can't give the feeling of a tens of times of explosion. Because VC is becoming more and more formal, the capital volume of market makers is getting bigger and bigger, and the market value of currencies is getting higher and higher. There is a phenomenon that the daily trading volume of a sluggish coin is millions, and the pull can reach hundreds of millions of transactions a day. Because the capital volume of market makers, VCs, and institutions such as BlackRock is 2-3 orders of magnitude larger than before, the profit ratio pursued has decreased. For example, if you have 10,000, you will buy cottages because the cottages have risen sharply, dozens of times, and you can make hundreds of thousands. If you have 100 million, you will buy big cakes, and if it doubles, you will make 200 million. Although the multiple is small, the capital volume is large, the absolute value earned is high, and it is stable!

This is the current situation. It is not that liquidity is severely depleted, but that the scale is large. The interest rate pursued by market makers and VC institutions has declined, making it difficult to increase by dozens of times. The market makers of Pie have obviously changed. In the past, they would pull up and smash hard, but now they are cutting meat with a knife and grinding slowly!

The currencies $SUI $ZRO $TON shared in the past two days have all grown well. A warm reminder is to stop while you are ahead and get your principal back first.

#Lack of liquidity