Author: Udi Wertheimer
Translation: Deep Tide TechFlow
Wall Street is quietly buying up your retirement funds.
I believe Bitcoin is entering a developmental stage we have never seen before.
I have been trying to persuade people in the cryptocurrency space. But they don't understand.
I finally found an example they can understand.
Please read this article in full. It may help your family retire.
If my judgment is correct, Bitcoin is now in the final phase of generational rotation.
Many (if not most) old whales have exited this asset. They sold at what they thought was the peak (around $100,000) and were replaced by new holders.
This rotation is very rare and difficult to achieve. But once successful—I believe it has already succeeded—a level of increase will follow that was previously unimaginable.
But you don't have to imagine what that will look like. Because it turns out this has happened before.
The Revelation of Dogecoin
Today, Dogecoin is known as the King of Memecoins, the meme everyone dreams of replicating. But few understand what actually happened, how Dogecoin achieved its legendary meme status, and how unimaginable the whole process was.
Since Dogecoin's creation in 2013, it has been regarded as a joke in the crypto space. Experienced altcoin traders believed the way to play Dogecoin was to accumulate for months during quiet periods, then sell to newcomers for 5-10x profit every few years, and then start accumulating again during the next quiet period. A cycle repeated.
They have gone through multiple cycles, buying and selling Dogecoin for less than a cent, making money from newbies.
But on April 2, 2019, something crazy happened.
Elon Musk, the then-CEO of Tesla and SpaceX, tweeted: 'Dogecoin might be my favorite cryptocurrency. It's really cool.'
In the wake of this news, Dogecoin surged by 50%, from 0.24 cents to 0.36 cents (note that it's cents, not dollars).
A 1.5x increase in a day is pretty good, right?
Wrong. This is nothing at all. Dogecoin is about to rise another 200 times from there, almost surpassing Ethereum.
But in July 2019, existing Dogecoin holders could not imagine such a future. Dogecoin going from $0.0025 to nearly $1 in just a few years??? Ridiculous. Impossible.
So after a 50% rise, they prayed to Satoshi, thanking him for getting Elon Musk to start promoting Dogecoin, and then they began to sell.
In a short time, their choice was right.
Old holders spent most of this year selling at every rise, and they felt pretty good about themselves as Dogecoin repeatedly failed to break out.
But beneath the surface, things were happening. After the COVID-19 outbreak, the public learned they could sit at home and try to short GME on Robinhood, and some noticed that Robinhood also offered cryptocurrency trading.
As early as 2020, Robinhood only listed 7 cryptocurrencies: old-generation BTC, techie ETH, and then some embarrassing coins like BCH and ETC. The only interesting and cool coin on Robinhood was DOGE.
The army of Robinhood meme traders saw this opportunity and initiated the popular TikTok trend called the 'Dogecoin Challenge.'
Encourage users to share screenshots of their Robinhood accounts showing their Dogecoin purchases. This trend exploded. Everyone is buying.
But crypto Twitter has not paid attention.
In 2020, cryptocurrency natives hardly paid attention to Robinhood or TikTok. Most old Dogecoin holders had no idea what was happening. Therefore, whenever the price rose a little, they sold.
For them, Dogecoin is just a stupid joke that you sell in an uptrend and buy in a downtrend to make some extra cash.
If you look at the chart, you will believe this. Throughout most of 2020, the price didn't fluctuate much. Everyone was trained to believe, 'When Elon tweets, we only go up 20%', because the old holders were always there dumping and keeping the price down.
They have no faith.
But new holders do have confidence.
Beneath the surface, the young people on TikTok have been buying.
The cryptocurrency Twitter space is largely in the dark. The charts make them believe that nothing has happened.
Until January 2021, Dogecoin sellers finally ran out of tokens.
In just two weeks, Dogecoin's price skyrocketed from $0.008 to $0.08, a tenfold increase in two weeks, with its market cap soaring from $1 billion to $10 billion.
People on the timeline went crazy. Group chats exploded. The old whales were calling each other in the middle of the night. Did you see that????
It's hard to express how big of a cognitive shock this is. Most cryptocurrency natives have completely collapsed because almost everyone has held Dogecoin at some point in the past 7 years, and almost everyone has sold it. They hardly paid attention to TikTok trends and have no idea that this wave has been brewing for months.
But their biggest mistake has yet to come.
Eventually realizing that the entire retail community had fallen in love with Dogecoin, some savvy cryptocurrency traders began to buy back. There were many posts on the timeline boasting about doubling their Dogecoin holdings quickly. They all felt very proud of themselves.
But none of them thought that this entire massive move was just a warm-up.
Their minds are still stuck on the old Dogecoin price. Dogecoin is a coin worth less than a cent. Everyone knows that. If it briefly exceeds one cent, that's a bubble, and we use it to accumulate more stablecoins and then leave.
But new holders know nothing about old prices.
The young people on TikTok and Robinhood don't know about the years of pain that old Dogecoin holders endured. In fact, when they zoom out on the Robinhood chart, they can't even see the historical price trends. To them, it's a blank slate, and 'Dogecoin to one dollar' seems completely reasonable.
Thus, as old holders rotated out, new holders had no concept of the old low prices, and after convincing CT that the market had ended between February and April, Dogecoin exploded again with a tenfold rise, reaching an ultimate peak of about $0.70.
This is 200 times higher than the peak of the first Elon bull run in 2019. In two years. TikTok users cashed out a fortune, while CT missed the entire market. The best CT traders might have locked in 3x profits in the middle (and made sure to boast about it on the timeline for months).
The same thing is happening to Bitcoin today.
To be fair, Bitcoin today is much larger than Dogecoin back then. But there are also more participants. What we have are not Robinhood retail traders and TikTok users, but institutions, ETFs, and Bitcoin fund management companies like MSTR. What we have is not Elon promoting Dogecoin (by the way, he wasn't as famous in 2019), but the president of the free world promoting Bitcoin. Maybe we even have—or will soon have—nation-state purchases of Bitcoin.
Institutions have been crazily buying Bitcoin from old holders: those cryptocurrency natives who are not paying attention. Cryptocurrency natives do not understand how traditional capital markets work. In fact, they mock them. They don’t want to know. So they completely missed out, continuing to sell at around $100,000 because that number seems ridiculous to them.
But new buyers don't even see this number. $IBIT, BlackRock Bitcoin ETF, is priced around $70. Its chart starts from the ETF listing date (January 2024), when it was priced at $30. It has only risen by $40! That's nothing, why isn't it $700?
And Bitcoin treasury companies like Saylor's MSTR don't even look at the unit price of the underlying assets. They measure purchases in dollar value. 'Last week we deployed $500 million.' They are completely insensitive to Bitcoin prices. They just put in as many dollars as possible. (By the way, MSTR is likely to keep doing this at an increasingly fast pace. If you're just sitting there waiting for Saylor to go bankrupt, it means you don't understand what's happening. Do your research. This won't happen in the short term.)
CT and cryptocurrency natives believe that after the ETF approval and Trump’s victory, Bitcoin's price will rise from $50,000 to $100,000, and that's the whole trend. I mean, it has stopped rising!
But the fact is, it just takes time to rotate the asset out of the hands of old holders. The real market hasn't even begun yet.
Look around.
Most of the old Bitcoin extremists are nowhere to be found. Where are they? Have they disappeared?
Most of them sold. They bought houses and boats, and then left.
Where are the cryptocurrency investors? They have switched to ETH and then wrote articles about flipping and staking yields.
What about young speculators? They have never held Bitcoin; they are all trading worthless air memecoins. Dreaming of catching up to the next Dogecoin, not realizing that the next Dogecoin is actually Bitcoin.
No one is left. Wall Street has bought everyone's Bitcoin. And they are just getting started.
So what will happen next?
When you read this, you may not want to believe it. You likely have a severe lack of understanding about Bitcoin. You know I have correctly predicted Bitcoin at every step, every day, for months, which is why you're reluctantly reading this article, but you still don't want to believe.
So if we look back at Dogecoin's story, we are now at the point after the first tweet from Elon, after the TikTok 'Dogecoin Challenge,' but before the first tenfold increase in January 2021.
In other words, the point of Bitcoin, after the ETF, after Saylor accelerates, after Trump takes office, and so on. But its point also lies before anyone believes 'this time it's really different,' before anyone realizes 'the sellers have sold out of BTC.'
Bitcoin is bigger, so we may not see a 10x increase immediately, but as I said before, I am very confident that by the end of this year we will see $400,000. This target may be too conservative.
You still think this is ridiculous. But the old holders are already out. We have no reason not to have rapid surges again.
And this is just the first wave of the market. I believe, like DOGE, there will be a larger, faster, and more violent cognitive collapse after the first cognitive collapse. After the first $400,000 target, there will be another tenfold or more cognitive collapse. This happens when the whole world starts to believe (remember when every young person in the world was talking about Dogecoin for a month?). But I don't want to talk too much about that right now. That will be a second cognitive collapse, which will be a later matter.
We are entering the first cognitive collapse.
What does this mean for you?
First, you can actually retire on 1 Bitcoin. If you have the chance to get 1 Bitcoin, do it now. Put it aside and forget about it. I'm not sure you'll have that opportunity again.
Second, after you buy your first Bitcoin, keep buying Bitcoin. Keep adding. That's what Wall Street is doing. Do you really think you are smarter than Wall Street? They have already outpaced you over the past two years.
Third, now is not the time to wait for prices to drop. Who will sell? The old holders are already out. They can't sell the coins to you; they have already sold them.
Oh, and there's a fourth...
The Fate of Altcoins
Your altcoins are done for. There will be some outperforming coins everywhere, and if you really pay attention, maybe you'll catch them. Quick in and out, thanks for your scam. But most altcoins will not be able to keep up with the massive influx of funds into Bitcoin.
This won't happen immediately. But if Bitcoin rises 50 to 100 times in a relatively short period of time, then no currency can keep up, not even one supported by revenue, unless the revenue also grows 50 times, which I believe is possible for early enterprises. So if you really want, you can still bet on early enterprises.
Interestingly, some large memecoin projects dream of replicating Dogecoin's success without understanding the true reasons for its success. They think that if they replicate some elements, like listing on Robinhood (but this time with 500 other tokens) or getting Elon to mention it (but that's not cool anymore, he's been doing that), or making some TikTok videos (far from the zeitgeist of the COVID era), they will be successful. But those pieces just don't match. It's clear that Bitcoin is a better story.
And the biggest loser of this cycle may be Ethereum. MSTR's market cap may surpass Ethereum's market cap. Ethereum will truly realize the prophecy: 'There’s no second best,' as it will leave the second position, replaced by MSTR. Ethereum holders also start to establish treasury companies, which is cute, but they can't keep up in this cycle.
You should be able to easily see the problem, with the biggest Ethereum bulls aiming for a pathetic $4000 target on the timeline, while awkward figures like sassal and eric.eth still post garbage content every day. The problem is, the old holders are still around. So yes, ETH will perform well here and there, but just as brief bursts, while overall, ETH/BTC will continue to create lower highs as the old holders continue to dump at every small rise.
If Lubin and Tom Lee and their friends continue to buy for years, then maybe the next cycle will finally see Ethereum have a real market. I don't think this cycle will happen.
Wall Street is buying up all the Bitcoin.
Buy some Bitcoin before it's all divided up.
Thank you for your attention to this matter!
This article is a collaborative repost from: Deep Tide
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