Author: Jaleel Jia Liu, BlockBeats
'If I only look at altcoins and not Bitcoin, I would think it's 312.' This is a helpless lament from a community member.
This lament is not unfounded. On-chain data truthfully presents a grim picture: the red downward trend mercilessly devours the community's hopes, with cries of despair everywhere. Taking the BIO ecosystem as an example, $URO has dropped by as much as 36.2%, and $RIF has not been shy either, falling by 21.8%.
The flood of profit-taking
Since Trump confirmed he would return to the White House, the altcoin season has surged like a tsunami, with crazy price increases and fierce, brutal PVP. A large number of new rich individuals have emerged in the crypto community.
For example, a smart money address 'GcYC1...quyt6' built a position in $RIF at a low point in late September when the DeSci Meme narrative had not yet taken off, turning $14,000 into a profit of $1,050,000, with a return rate of 7400%. This is a myth that no trading market would dare to imagine, only possible in the crypto space.
For instance, according to monitoring data from Lookonchain, within just 20 days, a trader invested $800 in URO, ultimately profiting $572,000; then invested $300 in RIF, earning $957,000. This means he turned an initial investment of $1,100 into a position worth $1.62 million, achieving astonishing growth rates of 3503 times and 714 times, respectively.
Such examples are countless. These profits are gradually being sold off in the rising process of altcoins, leading to a crash in altcoins and ushering in today's 'Altcoin 312.'
And where will these profits go? Today's market has provided us with an answer.
While altcoins are collapsing en masse, Bitcoin's price has broken $97,000, setting a new high. Funds are flowing out of the altcoin market, returning to trading platforms, and ultimately flowing into Bitcoin. Bitcoin, once again, reaffirms its status as the stabilizing force in this market with its price.
The end of altcoins is Bitcoin
At this moment, I am reminded of the story of SBF wanting to keep BTC below $20,000.
In the trial regarding the FTX incident and against SBF, Caroline Ellison, CEO of Alameda Research and also SBF's ex-girlfriend, testified and presented evidence that SBF instructed Alameda to continuously sell Bitcoin if it exceeded $20,000, trying to keep Bitcoin's price below $20,000.
As for the reasons behind this action, although they were not mentioned in court, informed members of the community provided the answer: 'The common practice of market makers on trading platforms is to pump Crypto (mainly targeting a few Top 20 coins like ETH) while suppressing the exchange rate of Crypto/BTC. This is not just FTX's approach; other trading platforms do the same.'
Doing so can gradually erode people's confidence in Bitcoin, attracting all the capital to Crypto, and once users' trading habits are cultivated, they can smoothly dump massive amounts of garbage assets onto lower-tier players.
After all, after getting used to the explosive trends and overnight gains in the crypto space, how many people have the patience to just hold onto Bitcoin even when it is almost certain to double?
Today, the reasoning remains the same. The unique enthusiasm and restlessness of crypto enthusiasts have not changed. And those truly large capital players have long understood the value of Bitcoin, exchanging garbage altcoins for the Bitcoin in your hands, strategically positioning themselves and waiting for rewards.
The best example is MicroStrategy. As of the time of writing on November 21, MicroStrategy's Bitcoin holdings have hit a new all-time high: 331,200 Bitcoins, with an average purchase price of $49,874. This easily translates to over double the cost price in profits.
Not to mention Wall Street giants like BlackRock; if they start buying Bitcoin in advance while applying for a Bitcoin ETF, their cost would basically be controlled between $20,000 and $60,000, and no one knows how many chips they have already hoarded.
Perhaps, for ordinary investors, the wisest choice is: hold onto Bitcoin well, and have fewer fantasies about overnight wealth. Use large positions to lay out Bitcoin and only use a small amount of funds to 'gamble.' Do you really think you're smarter than Wall Street elites like BlackRock and MicroStrategy?
Finally, to conclude with a story I saw on Twitter today:
'When Bitcoin hit $100,000, looking at the altcoin in my hand that was still down 30%, you forwarded a news alert from Caixin saying Bitcoin broke $100,000, and your friends and family all liked it, saying you entered early and must be making a fortune, you choked back tears and replied: Not much profit, just a small gain.'
I hope this is not a reflection of most of us.