September 9, 2025 Market Analysis
What is the most inappropriate thing to do in the cryptocurrency market? I think it should be shorting. In the past few days, MYX's devilish trend has pulled from a horizontal position of 1 dollar to a maximum of 17 dollars, causing countless shorts to be liquidated. According to statistics, the main force's positions built during the sideways period have achieved profits of several hundred million U in just a few days, and this capital comes from the counterparties. For such small coins, the main force collects the spot with a small amount of funds and controls the spot price to liquidate contracts. Since the circulation is basically in the hands of the main force, it means that the marked price of the contract is controlled by the main force. At this time, being their counterparty will definitely lead to a disastrous outcome.
Then why can't we short? Because for a target price, the maximum profit from shorting is one times the position, but the loss is unlimited. For example, starting to short at 1 dollar with a 1000 dollar position, when the price drops to 10 dollars, if there is still no stop loss, the position loss at this time would be 9000 dollars, while the profit from shorting, even if the coin price goes to zero, would only be 1000 dollars. In fact, in traditional financial markets, there have been similar classic cases of short squeezes, but due to the lack of regulation in the crypto space, theoretically, as long as the project operator's trading methods are good and the capital is sufficient, it is possible to profit multiple times through short squeezes. In reality, MYX is not the first case; before, there have been many coins that surged dozens of times in a short period. What I can say is to avoid these coins; if you want to short altcoins, you must set a good stop loss.
However, from the market perspective, there seems to be a feeling that altcoin trends are coming. However, I want to say that this is different from what everyone expects about the altcoin season, which I mentioned before. Even if an altcoin season really comes, it is likely to be concentrated on new coins or newly listed coins. Those old altcoins, due to retail investors holding a large amount of chips, are unlikely to be pumped again. For project teams, the cost of launching a new coin is much easier than operating an old project. Just open a new X account, gather some operators, work hard to get listed, and they can achieve a few small goals. So, we still need to learn to be immune to altcoins and not be deceived by those ethereal rises.
In terms of the overall market, there are signs of funds gradually warming up. For Bitcoin and Ethereum, the activity of altcoins during the consolidation period is also a good sign, indicating that the probability of a general market rally is increasing. Of course, I also want to give a warning here: generally speaking, altcoin trends occur in the latter half of a market cycle. Currently, altcoins have not fully taken off yet. When the market starts to crazily speculate on altcoins, that's when we need to continue executing our exit plans. Right now, it seems that altcoins are just starting to rise, and whether we can pull out the slogan of the altcoin season remains to be seen.
Thank you for your attention and likes.#山寨币市场回暖
