The Shocking Secrets Behind the Rise and Fall of Altcoins,
The cryptocurrency market is both thrilling and risky, and the trends of altcoins attract significant investor attention.
Recently, many altcoins have seen their decline halt, which is perplexing; let’s analyze the reasons behind this.
Plummeting Positions, No One Cares Currently, the vast majority of altcoins have been abandoned by the market, with contract positions extremely low and very few people buying spot.
In such a scenario, if the market makers drive down prices, they not only won’t make money, but it could also lead to a reduction in the market value of altcoins, affecting their collateral lending amounts, which is simply not worth the risk.
Reverse Operations, Market Makers vs. Retail Investors When Bitcoin performs poorly, altcoins often pretend to be strong and do not follow the decline, in order to attract retail investors. Once a large number of retail investors flood in, they may lower prices to harvest profits.
If retail investors short altcoins when Bitcoin drops, the market makers do not comply with their wishes, using sideways movement and pinning to wear down retail confidence, forcing them to sell at a loss.
Thus, many people experience losses when going long and see rebounds when going short; these are all strategies employed by market makers.
Distinguishing Between Mainstream and Junk Altcoins Mainstream altcoins closely follow Bitcoin’s trends, rising and falling in sync.
If a rebound is strong, it indicates that market makers are willing to support prices, and retail participation is high, suggesting potential for future price increases, making it appropriate to participate. On the other hand, junk altcoins often surge against the trend by dozens of points, usually due to market makers using small amounts of capital to create upward movements to attract attention, posing significant risks.
In summary, the altcoin market is complex; everyone must remain clear-headed, resist worthless junk altcoins, and choose mainstream, high-liquidity assets for investment to avoid being harvested by market makers.
