BTC hits a new high again! Why are these coins falling like dogs? Who is making money in the crash?

If you don't look at BTC and only look at altcoin, I thought it was 312. This is a sigh of helplessness from a community member.

This lament is not without reason. The on-chain data vividly depicts a bleak scene: the relentless red downtrend is devouring the community's hope, leaving devastation in its wake. Taking the BIO ecosystem as an example, $URO has plummeted by as much as 36.2%, and $RIF is also not far behind, dropping by 21.8%.

Source: Blockbeats

The tide of profit-taking fleeing

After Trump confirmed his return to the White House, altcoin season surged like a tsunami, with crazy price increases, intense and brutal PVP. The strong will survive, creating a new generation of wealth in the crypto world.

For example, a smart money Address 'GcYC1...quyt6' had a low Build a Position of $RIF in late September before the DeSci meme narrative took off, and made a profit of $1.05 million with just $14,000, a staggering return rate of 7,400%. This is a myth that can only happen in the crypto world.

For example, according to Lookonchain monitoring data, within just 20 days, a trader used $800 to buy URO, ultimately making a profit of $572,000; and used $300 to purchase RIF, earning $957,000. This means that with an initial capital of $1,100, he increased the Position value to $1.62 million, achieving astonishing growth of 3,503 times and 714 times respectively.

There are countless examples of this. The profits from these funds gradually sold altcoins during the rise, leading to a big dump of altcoins, ushering in today's 'altcoin 312'.

And where will these profitable funds go? Today's market also gives us the answer.

Just as altcoin collapsed massively, the price of BTC broke through 97000, reaching a new high. Funds were withdrawn from the altcoin market, flowing back to the trading platform, and ultimately flowing to BTC. BTC, once again, reaffirmed its dominant position in the market through its price.

Source: TradingView

The end of the Shanzhai coin is BTC

At this moment, I am reminded of the story when SBF once wanted to keep BTC below $20,000.

In the case of the FTX incident and the trial of SBF, Caroline Ellison, CEO of Alameda Research and former girlfriend of SBF, testified and presented evidence that SBF had instructed Alameda to continue selling BTC if it exceeded $20,000, attempting to keep the BTC price below $20,000.

Source: Blockbeats

As for the reason why they did this, although they did not mention it in court. But the insiders in the community gave an answer: 'The usual means of market makers on the trading platform is to boost Crypto (the main target is several Top20 coins such as Ethereum), while suppressing the Exchange Rate of Crypto/BTC. This is not only FTX's practice, but also the case with other trading platforms.'

Doing so can slowly erode people's confidence in Bitcoin, attracting all funds to Crypto. Once users' trading habits are cultivated, they can smoothly dump massive amounts of junk to lower-level players.

After all, after getting used to the explosive trend of the crypto world and the overnight doubling of K-cups, how many people have the patience to hold onto BTC even when it is almost certain to double?

Today, the truth remains the same. The frenzy and impatience unique to the crypto world people has never changed. And those true big money players have long understood the value of BTC, exchanging your BTC for worthless altcoins, laying out for the long term and waiting for the harvest.

A prime example is MicroStrategy. As of November 21, MicroStrategy's Bitcoin Holdings hit another record high: 331,200 BTC purchased at an average price of $49,874. Easily doubling profits above the cost price.

Not to mention giants like BlackRock on Wall Street, if they start buying BTC in advance when applying for BTC ETF, then their costs are basically controlled between 20,000 and 60,000 BTC, and no one knows how many chips they have hoarded.

Perhaps, for ordinary investors, the wisest choice is to hold BTC and have fewer fantasies of getting rich overnight. Use a large position to allocate BTC and only use a small portion of funds to 'gamble'. Do you really think you are more Satoshi than these Wall Street elites like BlackRock and MicroStrategy?

Finally, to end with a meme I saw on Twitter today:

"When Bitcoin was at $100,000, you looked at the altcoin trapped at 30 points in your hand. You hesitated and forwarded the news that BTC broke through $100,000 from the Wealth News. Your friends and family all liked your post and said you must have made a fortune by entering early. With tears in your eyes, you replied, 'I didn't make much, just a little profit.'"

I hope this is not a reflection of most of us.

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, perspectives, or conclusions in this article are in line with their specific circumstances. Invest at your own risk.

This article is authorized for reprint from: "Rhythm Blockbeats"

Original Author: Jaleel Plus Six

"BTC hits a new high again! Why are these coins falling like dogs? Who is making money in the crash?" This article was first published in "encryption city"