Today, as altcoins slightly rebounded, many people started shouting that the altcoin season is coming. But does the altcoin season really exist? Have people forgotten the recent major crash? When Bitcoin rises, altcoins do not move; when Bitcoin fluctuates, altcoins fall; when Bitcoin drops, altcoins plummet. In just a week, almost all altcoins were brutally cut in half. Altcoins are that fragile. That day, I vowed never to touch altcoins again. Has anyone noticed that 98% of altcoin prices are still at their peak from May 2021? Coins like UNI, AAVE, and SOL, which have institutional backing and profitable projects, haven't fallen too badly and have even risen recently. However, most altcoins, especially meme and VC tokens, continue to hit new lows every year. So why won't there be an altcoin season? Why shouldn't we touch altcoins? There are three reasons:
1. Firstly, altcoins are called altcoins because they are all imitations of Bitcoin. Therefore, almost 95% of altcoins attract retail investors with high returns, relying on hype and stories to deceitfully obtain your Bitcoin and real money without any cost, and they fundamentally lack actual value or profits to sustain their token prices. Thus, this characteristic determines that most altcoins are destined to go nowhere.
2. Secondly, the core reason for the current bull market is the lack of money. Without liquidity, although Bitcoin keeps reaching new highs, most new funds are flowing in from ETFs, and currently, there are only Bitcoin and ETH ETFs. Additionally, major exchanges like Binance are aggressively listing new tokens for short-term gains, leading to liquidity depletion and poor profit effects for altcoins, making it difficult to attract new retail investors.
3. Lastly, in recent years, the proliferation of VC tokens has led many large institutions to issue tokens at high valuations with low circulation to achieve high profits, while simultaneously shorting and hedging these tokens. This has allowed institutions to IPO and earn massive profits from tokens at extremely low costs before they go live, often making dozens or even hundreds of times their investment. They continuously sell off their overvalued assets, leading to retail investors having no money to make, market liquidity drying up, and the profit effect deteriorating. Eventually, this results in veteran investors being afraid to buy altcoins and no new investors entering the market, with institutions only recognizing Bitcoin, creating a vicious cycle.
In summary, almost all tokens in the market will continue to hit new lows, and holding them long-term will only result in losses. If you want to hold for the long term, apart from Ethereum, it's best not to touch any altcoins including old coins like SOL, XRP, and LTC!