$BTC Facing a critical blow? What is the real reason behind BTC’s recent 5000-point surge and plunge?

Last night’s trading information was just a trigger; the real reason is the depletion of liquidity in the crypto market.

Since the last bull run, a large number of worthless altcoins have been released. In a crypto market with a market cap of 3 trillion, their true liquidity is less than 7 layers.

To address the reasons:

1. The last wave of altcoins did not completely die; it was not completely washed out.

2. This time, too many unworthy projects entered the crypto space, draining liquidity.

Take Ethereum L2 as an example: OP, ARB, POL (originally called Matic), STRK (which is transforming into BTC L2), ZK—these VC coins are pure throwaways, trapping retail investors at the peak, and the market cap is still so large?

Isn’t this a clearly fake market cap? How can this liquidity be released?

1. Pump to the previous high? Retail investors dump, increasing market liquidity.

2. Destroy; if once doesn’t work, then twice, N times, until the coin’s price is cut by 100% or more, is this feasible?

Look at Ethereum now; isn’t it aiming for 1500? If BTC experiences the same market conditions as yesterday three more times, can Ethereum hold at 1200?

No matter how the market moves, we face the truth directly. If the general direction is to stop losses, we won’t get trapped.

A rebound is just a rebound; don’t get obsessed with it.

Set a limit on your trading frequency. 2-3 opportunities per week are really enough; don’t trade frequently.

Now, wait patiently; the relationship between the hunter and the prey is always changing.