Author: Jaleel Jia Liu, BlockBeats
'If I only look at altcoins without considering Bitcoin, I would think it was 312.' This was the helpless exclamation of a community member.
This exclamation is not without reason. On-chain data vividly presents a grim picture: the red downward trend ruthlessly devours the community's hope, leaving a scene of despair. For example, in the BIO ecosystem, $URO has fallen by as much as 36.2%, and $RIF has also not held back, declining by 21.8%.
The tide of profit-taking outflows
Since Trump confirmed his return to the White House, the altcoin season has surged like a tsunami, with wild increases, fierce and brutal PVP. The wave has washed away many new wealthy individuals in the crypto circle.
For example, a smart money address "GcYC1...quyt6" had already built a position in $RIF at a low point in late September before the DeSci Meme narrative took off, making a profit of $1.05 million from just $14,000, with a return rate as high as 7,400%. This is a myth that no trading market would dare to imagine, only possible in the crypto circle.
For example, according to monitoring data from Lookonchain, within just 20 days, a trader bought URO for $800 and ultimately made a profit of $572,000; he also purchased RIF for $300, earning $957,000. This means he increased the value of his position from an initial capital of $1,100 to $1.62 million, achieving astonishing growth rates of 3,503 times and 714 times, respectively.
There are countless examples like this. These profits gradually sold off altcoins during the rise, resulting in a crash of altcoins and ushering in today's 'Altcoin 312'.
And where will these profits go? Today's market has also provided us with answers.
At the same time as the massive collapse of altcoins, Bitcoin's price broke $97,000, setting a new high. Funds were withdrawn from the altcoin market, flowing back into trading platforms, and ultimately towards Bitcoin. Bitcoin once again reasserted itself as the stable force in this market with its price.
The end of altcoins is Bitcoin
At this moment, I am reminded of the story where SBF once aimed to keep BTC below $20,000.
In the trial regarding the FTX incident and SBF, Caroline Ellison, the CEO of Alameda Research and SBF's ex-girlfriend, testified and provided evidence that: SBF instructed Alameda to continuously sell Bitcoin if it exceeded $20,000, attempting to keep the price of Bitcoin below $20,000.
As for the reason behind this, although it wasn't mentioned in court, insiders in the community provided the answer: 'The usual tactic of trading platform market makers is to pump Crypto (mainly targeting several Top 20 coins like ETH) while suppressing the Crypto/BTC exchange rate. This is not just FTX's approach; other trading platforms do the same.'
Doing this can slowly erode people's confidence in Bitcoin, attracting all funds to Crypto, and once users' trading habits are cultivated, they can smoothly dump massive amounts of junk to lower-tier players.
After all, having become accustomed to the explosive trends in the crypto circle and the rapid increases overnight, how many people have the patience to hold onto Bitcoin even when its doubling seems almost certain?
Today, the principle remains the same. The unique enthusiasm and impatience of people in the crypto circle have never changed. Those true big players have long understood the value of Bitcoin, exchanging junk altcoins for the Bitcoin in your hands, laying out a long-term strategy and waiting to reap the rewards.
The best example is MicroStrategy, as of November 21, MicroStrategy's Bitcoin holdings have reached a new all-time high: 331,200 Bitcoins, with an average purchase price of $49,874. They easily made more than double their cost price.
Not to mention Wall Street giants like BlackRock, if they started buying Bitcoin in advance while applying for a Bitcoin ETF, their costs would likely be controlled between $20,000 and $60,000, and no one knows how many chips they have quietly accumulated.
Perhaps, for ordinary investors, the wisest choice is: hold onto Bitcoin well and reduce the fantasy of overnight wealth. Use a large position to lay out Bitcoin and only use a small part of the funds to 'gamble'. Do you really think you are smarter than Wall Street elites like BlackRock and MicroStrategy?
Finally, let me conclude with a story I saw on Twitter today:
'When Bitcoin was at $100,000, looking at the altcoins in my hands still down 30%, I forwarded the news about Bitcoin breaking $100,000 with mixed feelings. Friends and family all liked it, saying I must have made a fortune by entering early, and I replied with tears in my eyes: Not much profit, just a small gain.'
I hope this is not a reflection of most of us.
