Market sentiment is similar to the summer of 2021, marked by great disappointment. At that time, the crypto ban in China caused BTC to drop 50%, dragging altcoins down with it. Today, everything seems to be in decline: AI tokens, memes, ETH, and even projects with strong fundamentals.
đ Only a new meme, launched two days ago, is generating interest. It is capturing market liquidity, creating a massive capitulation and amplifying investor frustration. However, this situation could set the stage for a future âliquidity tsunamiâ, where a rapid recovery could occur.
Historical comparisons:
1. December 2017: LTC attracted all the liquidity, spiked, and then caused a strong market recovery after cooling down.
2. January 28, 2021: DOGE exploded 10x in 24 hours, draining liquidity from altcoins and triggering an altseason followed by the peak of the bull market.
3. January 18, 2025: A new meme, TRUMP, launched by the President of the United States, absorbs liquidity and skyrockets. Will this time be different?
What it means:
The market seems to be entering a critical phase, but many investors are not ready to seize the opportunities. A major recovery could come after this period of capitulation.
